Put more $ down vs buy more properties

[Account Closed]

I'm interested in purchasing a condo and rent it out. I could put down 40%. However, there are two units in the same building for sale. Does it make sense to buy both and put 20% down for each?

[Tom C.]

I am not sure why you have given yourself these two options. If you have cash, you have more options than even you are currently aware (until you commit your funds to projects). Unless the "package deal" presents you with a steal, then I would just buy one at 20% down. Keep the extra for a few months to do a better deal relative to your last. This is a long term game. Don't rush into anything unless you are really getting a bargain purchase.

I would also make sure you are aware of how the storm has impacted your market as I would imagine it will be one of the most dynamic areas in the country for the next year or two. Clearly I am not from your part of the country, but this is an interesting time to make a big bet either way. Make sure you know won't be buying into a tight market with many families looking for a home and many investors looking to capitalize on the influx of renters.

I would avoid any fixer-upper for a while since most contractors in the area are likely charging "storm-premiums."