Buying bigger vs. smaller houses: pros and cons

[Brandon Anderson]

What are the pros and cons of buying a larger, more expensive house as a rehab as opposed to a smaller, cheaper house? What about as a newby, first-time rehabber? The area I live in has a lot of mid- to upper-middle class homes. I can potentially invest in anything from a 3/1 rancher to a large 5/3 in a golf course community. The larger homes in my area are more in demand and would sell much faster. The way I see it on the surface, I'd be better off buying a $400k (ARV) house at 75-80% ARV than a $160k house at 70% (ARV); I'd have a more desirable house with a larger net profit, and if things went sour during the rehab I'd be able to get out from underneath it easier, being that that type of home is more in demand (therefore less risk in that respect). I would expect a higher profit, so I'd be more selective of the properties I purchase. This kind of falls in line with what Stephen Cook practices (any comments on his books and materials?).

Are there other things I need to take into consideration, such as differences in insurance?