Should we buy 2 homes or 1??

[Rachel Shepherd]

Hi!

We have about 39,000 to put down on another rental. Should we use leverage and buy two homes at a lower price or 1 home at a higher price. After researching I believe we can bring in 200 a month above rent on each home, regardless of how many we buy so I'm leaning towards 2. What are your thoughts and experiences?

[Rachel Shepherd]

Sure. The single home would be about 145,000, 3bd 2ba at 1100 sq ft. We would put the total 39,000 down and the payment would be about 625. We could rent that for about 900 at least. Maybe 1000.

The other two are 

79,000 2bd 2 bath at 1100 sq ft. We would put 15,000 on it and bring the payment down to 420. Rent would be about 750 a month.

89,000 2 bd 1 ba at 850 sq ft. We would put 18,000 on it and bring the payment to about 440. Rent would be around 750-800. 

Does that help?