Buy another property vs. improve existing property?

[Ryan M.]

I'm interested in feedback on which option to pursue. I have enough cash to either:

1. Purchase another SFR - or
2. Improve an existing SFR.

I've run the numbers for both and given my capital ($30k), it is about the same out of pocket to do either, and both scenarios will net me roughly the same monthly cash flow ($300/mo).

Purchase another SFR

• Pros - diversification, another property in my portfolio, another property that someone else is paying down the debt, new property would provide add'l depreciation,
• Cons - more leverage, another property to maintain, rent, mortgage, take on more debt for same monthly cash flow

Improve existing SFR

• Pros - improving an existing asset, no addition debt for the same monthly cash flow, less to manage (property, tenant, etc...) long term, increase equity
• Cons - increase my exposure/cash in a single property, less leverage, more to damage by tenant, more equity tied up in one property

I recognize the pros/cons are not an exhaustive list but just some of the things I'm trying to think through.

Are there other "big rocks" I'm missing?

What would you do, and more importantly - why?

Thanks in advance for your time & feedback.