Duplex or save for 5+ commercial rental

[John T.]

Hey All,

I bought my first property last year, a duplex that I am living in half of. Now in my pursuit of self employment I am looking at purchasing another. I found a foreclosed 3 unit for 48k in a very desirable area, but it requires a lot of work. 25% down and after renovations i'll be looking at 20k, which will provide a net rental income of $1000/mo. It would take me about 1 month to renovate each unit, working part time. It's an attractive thought, but i've been wondering if it makes sense to keep saving for another year or so and buy a more dense property, maybe a 5+ unit building. What do people usually do in this situation?

Thanks