2nd Property - How Would You Do It?

[Jonathan Tao]

Hi all, 

I recently purchased my first duplex. It's an OOS investment in a great pocket of Indianapolis with great cash flow day 1. I know it's likely lower appreciation, which is something I'm ok with since I wanted to build my income foundation first. I have some capital to deploy and looking to get into my second deal but hoping to get some advice from more experienced folks. 

Trying to decide how to allocate my resources between the following options. I'm based out of Los Angeles so buying a property in SoCal is somewhat out of the picture due to high prices. I'm debating between the following 

• Buy another 2-5 rent-ready resi units in the same market to cash flow (Indy) 
• Buy some BRRR resi deals in the same market so I can recycle my capital (though my day job is pretty time consuming so not sure I have that much time to oversee these projects even at a high level)
• Buy 1 deal in a slightly higher cost market with more appreciation upside but less cash flow (e.g., Charlotte, Raleigh, Dallas, Phoenix)

I know the answer will ultimately depend on the person's personal preference, financial goals/situation but curious to hear what others have done and any lessons learned.