Two Options

[Michael Rodrigues]

I'm trying to figure out what would be more beneficial.  

We are currently living in a townhouse that has about $30k in equity and should be easy to rent out.    Here is what we are trying to decide between:

1.  Purchase another property as a long-term hold (rent it out) such as a $90,000 apartment currently worth about $110,000.  Rent it out and hold long term, and stay in our townhouse.

or 

2.  Purchase our next home, move into it and then rent out our current townhouse for $100-200 cash flow a month and hold long term.  

Ideally we'd like to eventually build a bigger real estate portfolio with about 15 properties, all long-term holds for retirement income.  

Either way, it appears we'd have a few hundred dollar cash flow each month, maybe around $1200 a year give or take.  Doesn't seem like much but I know it's how you start out.  

I have about $30k saved for a down payment.  Which would not be enough for 20% down on our next home, but would be more than enough for 20% down on the $90,000 apartment.   

Thank you in advance for your input!