Better to buy cheap property now or save to buy better later?

[Duane Alexander]

Background. I am a beginning real estate investor based in Atlanta and currently looking at local properties around the city. From my job I am able to save 35k a year and currently have that in savings. I am unsure if I should buy a 100k SFH now or wait a couple years to save more money to put a bigger down payment on a better property. Any advice here? Basically if you had the choice of buying 5 100k properties yearly for the next 5 years, or just saving for 5 years and buying one 500k 3-4 Plex or something similar, what would be the better option? I'm kind of eager to get into the game, but I don't mind waiting either.

[Jingru Sui]

Originally posted by @Duane Alexander:

Background. I am a beginning real estate investor based in Atlanta and currently looking at local properties around the city. From my job I am able to save 35k a year and currently have that in savings. I am unsure if I should buy a 100k SFH now or wait a couple years to save more money to put a bigger down payment on a better property. Any advice here? Basically if you had the choice of buying 5 100k properties yearly for the next 5 years, or just saving for 5 years and buying one 500k 3-4 Plex or something similar, what would be the better option? I'm kind of eager to get into the game, but I don't mind waiting either.

You can get something around 200K that's decent and good rental. Around 100K might need a lot of work up front right now to fix up to be rent ready. You don't have to wait to get 500K house which might not be good rental at all since you might not be able to rent good price.