Quality vs. quantity

[Dan Heath]

I'm curious of thoughts out there regarding buying a few good quality properties and focus on debt paydown and highest and best (HABU) vs. accumulating mass quantity of rentals. It seems to me like a logistical nightmare to have 30 doors each only netting $100/mo  = $3,000 vs. owning 5 doors, bought with existing equity, large down pymt, and each door netting $600 = $3,000; with a focus on maximizing the best possible use of the property. Maybe converting it into something that will produce more income. Most of the BP podcasts I've listened to have focused on the number of doors. 

Let me know your thoughts. 

Thanks!

[Greg M.]

There is no right or wrong answer to this. It's all about what you're trying to achieve. There are a lot of people on these forums that focus on the quantity and are thrilled to have 30 units generating $100 each. Most (not all) of these people have very little equity in the units and a small economic downturn could crush them. 

My goal is to have a small quantity of units that by the time I retire (early) are fully paid off and I can sit back and collect a couple thousand in rent every month from each unit. The small quantity should be easy to manage.

The thought of having a large quantity of units that each produce just a little cash is awful. Either I have to manage all of them, which is like a real job, or pay someone to manage them, which cuts way in to my cash flow. Quality over quantity every day!!