Play it safe and slow or take a risk?

[Adam Johnson]

Hi guys,

I'm planning on getting started in real estate investing next year, on track to make my first move in June 2018. Currently I'm living in a 1900 sq. ft. 3 bedroom 2 bathroom house in a quiet rural neighborhood that I'm paying $650 a month for not including utilities with a $350/year HOA fee. Rental rates for single family houses with the same specs in my area run between $1000-1500/month and I plan to start out advertising for about $1100/month rent.

The current plan is to save up between $30 and $40k and buy a manufactured home for cash.  This will allow me to rent out the home that I'm currently in, as well as have a property of my own to live in that is completely paid off save for utilities.  I'm also working a 40 hour/week job, so if I manage to get tenants in the house for rent I'll be able to bankroll all of the rental profits along with all of the income I get from my day job, which will speed up the process of buying and renting out properties while minimizing the amount of risk that I am taking on.  Worst case scenario is that I would end up with a vacant house for several months while I'm trying to find someone to rent it; or the market tanks and I won't be able to get my desired rental price met.  In either of those cases I will still be able to cover the mortgage cost with my own paycheck.

My question is, instead of taking this course of action, would I be better off taking the money that I save up and putting it into a second property to rent out?  With all of the talk about the market being at its peak and being primed to fall I'm hesitant to put myself into a situation where I'll be stuck with two house payments and no way of making them with my current income, although with my current plan of action I may end up with more houses than I can pay for anyways if I end up with two or three under my belt instead of just one.  Any thoughts?