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Updated over 6 years ago,

Account Closed
  • Rental Property Investor
  • Nashville, TN
2
Votes |
9
Posts

Percentage of Net Worth to Invest in One Property

Account Closed
  • Rental Property Investor
  • Nashville, TN
Posted
Hey all, I was wondering if anyone had any thoughts one what the maximum percent is that is good practice to invest into one single investment. For instance, if one’s net worth is $500K, and most of its tied up in real estate, would it be a good idea to keep the next investment at $100K or less (20% of total net worth) from a diversification standpoint to prevent from devastating loss in the event something majorly goes wrong with the property? I’ve got 10 single family properties in my portfolio, and I’m dabbling with the idea of a small apartment, but if I pursue that, it would be a significant portion of my net worth that could potentially go south, and I don’t want most of my eggs in one basket. Does anyone have any guidance on threshold standards? 25? 20? 15? 10?

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