Interest rate cuts, should I buy bigger?

[Adam Pond]

Hi all,

I'm a newer real estate investor in the San Antonio/Seguin area who is looking for my second property. As a newer investor, I've opted to house hack & STR my first property to save up money. My next property I'm currently looking at is only $120,000 and is 4 bedrooms which I plan to house hack & STR as well. I've been getting into these properties with 3.5% owner-occupied with the one year requirement. My question is with new lower rates, should I try to lock in something in a better neighborhood for more? I have a steady income that will more than cover the mortgage. So I've calculated I can go up to around $250,000 without being too over-leveraged. Should I go bigger for better cashflow and possibly appreciation? Thanks in advance for any replies!