Investing Capital in one or Multiple Rental Properites

[Shawn S.]

Hey BP community!

I have a question regarding investing capital in one property vs in multiple and am interested in learning what the community's perspective is on the topic. What I would like to know is what things should be considered when investing the majority of your capital in the purchase of a single rental property vs in the purchase of multiple rental properties? For example, if you had $100,000 in capital at your disposal, would it be more wise to use that capital to purchase a single rental property for $100,000, or would it potentially be a smarter decision to take that $100k and use it as a down payment for multiple rental properties (e.g. 20% down payment for five rental properties that each cost $100k)?

Any thoughts?

Thanks in advance!

- Shawn