My First Property: 4 Unit or 10+ Units?

[John Henry]

Hi Everyone,

I'm very new to Real Estate Investing, (but not investing in general) and I'm looking to acquire my first investment property!

A few things to note:

1) I live in NYC but am looking at Allentown, PA. (1.5hrs away)

2) I am not able to make PA my primary residence due to the high-intensity of my work.

3) I have about $50k total for down payment + closing costs

With that said, I am weighing my options for my first investment. Many have recommended a smaller, 4 Unit purchase. (More within reach financially) However, I am more tempted to shoot for economies of scale and go for 10 - 16 units if I can.

I may be a little short on the cash but I'm sure I can come up with it somehow.

My question revolves around the advantages vs advantages of getting into a bigger property as opposed to a smaller one for my first investment. Am I in over my head? Is managing a 4 Unit easier than 10 Units or is it actually more efficient due to unit economics? Are there things I'm not foreseeing?

Would appreciate very much any insight and/or thoughts!

Best,

JH