Start small or go big?

[Theresa Reynolds]

What would you tell a first time investor with 80k to invest?

Start out small and buy a SFH rental or go big right away by maxing out loan potential and buying MFH?

Note: In the area I am looking, there are 4 plexes available for around 180k, but they are outdated. SFH are available for 120k (need work also)

It would make sense to me to go MFH but is it smart to max out your credit right away?

Question 2: If units are rented when you buy, do you kick out renters to remodel and then relist rentals? Or would it be better to keep them for a while to recoup some money and then renovate sometime down the road?

[Andrew S.]

Starting with a 4 unit is reasonable. Keep existing tenants, renovate as they move, bump up rents to fair market price after fixed up.