Rental Portfolio Question

[Chris Jones]

I recently closed on my second single family home in Winston Salem, NC.  My strategy is to buy and hold single family homes in areas that produce good rental income and have significant potential for appreciation.  I currently saving for my third house, but I am unsure  if I should buy a third property in Winston Salem or branch out to surrounding towns like Charlotte, High Point, or Greensboro.  Maybe I have too much exposure to a small market?  Any advice is appreciated!

[Daniel Roberts]

My experience:  If you are talking about 10 or less houses and trying to build on that number, there are many more advantages to being in the same market than being spread out among many.  In the same City/area, you can save time and money by using same prop manager, same realtor, same bank etc.  

Real estate isn't stocks, so I don't buy in to the idea that having all your houses in one area increases your risk.  Instead, one area allows you to get better returns and put less time into the management of your properties, therefore allowing you to build quicker!  You being on the other side of the Country makes that an even bigger deal.

Good luck!