Benefits of "scaling up"?

[Thomas Hartin]

I am a relatively new pro member on Bigger Pockets and this is my first post!

I was hoping somebody could help me explain the benefits of "scaling up" properties as opposed to a long term buy-and-hold. I do not currently own any real estate, but I do have a good savings and plan to start buying somewhat aggressively in early 2021 (Covid depending...) My current plan is to buy 4-6 small (duplex/triplex/quad) multifamily properties per year over a five year period, which should give me enough money to retire from my current job. I live in NYC but do not plan on investing here as I am focused on cash flow for the time being. I plan to try the BRRRR strategy, using hard money for the purchase but my own cash for the entire rehab. I am also OK with leaving some money in each of the properties as my income will supplement that.

Is this a good strategy? I keep reading/listening to stories of people who started in multi-family but then sold their properties to invest in larger apartment complexes (e.g., 20+ units). What are the pros and cons of simply holding onto my existing properties, and living off the cash flow (while the mortgage gets paid down to nothing)?

Thanks!

Tom