One big deal or multiple small deals?

[Phil B.]

Is it better to use a sum of cash set aside for investing on one big deal, or multiple small deals? For example, do you think it's better to buy 4-5 duplex/SFH deals or one commercial deal? What are the pros and cons of both? Which do you prefer and why?

[Derrick W.]

I prefer the smaller deals. 

1. If things fall apart you lose one house at a time. This buys time to recover. 

2.big buyers only buy big deals.  You have cut out a huge chunk of the market when it comes to off load time. 

3. You can sell or remodel a little at a time as apposed to having to tackle a huge project. 

Smaller deals avoid the ole "all your eggs in one basket" problem.