Starting up as a new investor... multiple small SFH vs 1 large?

[Matt Kelty]

First I’d like to say hello and thanks for letting me play. This is my first post and I’m excited to finally get active and be a part of the community.

After a good amount of studying and trying to lear, my wife and I are starting to look into the SFH market in the Detroit area. Where we're located it's 30 minutes to the north and I can find multiple homes at a low introductory cost (20-40k) and to the south I can find 100-150k.

My question as a new investor looking to grow and hopefully make some success, is there more value in the long run to multiple lower income properties vs. a single higher income property? My thoughts are the total cost to purchase 4-5 homes that can pull $500-600/month is less than the cost to outright purchase a higher valued property. But the nicer property can get close to the combined rent on its own. Obviously financing is an option for the larger property, but if cash flow is the goal is one a better option that the other?

Thank you so much and sorry for the long post.