Conservative and steady or go big from the get go?

[Richard Talbott]

Should I sell my SFRs in order to finance 20+ unit properties, or should I slowly build my portfolio before making the big jump to large multifamily properties?

Hello everyone,

I have a SFR that is completely paid off and I now have a great tenant. I have been looking high and low for another good rental property but have been contemplating if I should focus on multi-family properties. My initial plan was to acquire five SFR and get them paid off. At that point I would focus on getting into multifamily, specifically 20 units or more. At this point, should I run into problems with the large multi-family unit the income from my SFRs could cover the difference. Therefore, I am not putting myself in a position where I'm risking my personal financing and potentially go bankrupt. However, I watch podcasts, such as Grant Cardone, and have read a few other articles that suggest I should sell my SFR and go directly for the 20+ unit properties. What do some of you more experienced investors believe to be the better strategy? Keep in mind I have a full-time job and do not intend to manage properties personally. Thank you in advance for any advice/comments. Have a great day.

Louie Talbott