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Updated about 7 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Grand Rapids, MI
0
Votes |
3
Posts

Buy now or keep saving for larger unit?

Account Closed
  • Rental Property Investor
  • Grand Rapids, MI
Posted

Hi everyone, my name is Jarred and I am newer to the BP forums. 

I am sorry if this concept has already been covered but I am having a hard time making a decision on my next investment and overall strategy. The general question is this:

Should I buy a duplex in a B or C class neighborhood now to start building my portfolio or should I continue to save and purchase a property with more units in a better neighborhood in the (hopefully near) future?

I currently own and live in one half of a duplex in an excellent neighborhood. My experience with this has been great, my tenants are awesome and have had minimal issues. I have a good "day job" that I do actually enjoy so I am in no rush to stop working there. However, I am very excited about investing in real estate and building a quality portfolio. 

That being said, I can't decide if it's a better option to just get started with my portfolio by buying some of these cheaper properties (that cash flow) or wait and buy a property with more doors in a better neighborhood and presumably less headaches. Most of the cheaper properties are also further from where I live so self-managing is a bit more inconvenient in this case.

I am sure there are people on both sides of this question as I don't think there is a right or wrong answer, only differing strategies. So, I am really looking for some compelling cases from either side. 

Thank you!

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