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Updated over 9 years ago on . Most recent reply
![Frank Durham's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/334183/1621444955-avatar-compubyte.jpg?twic=v1/output=image/cover=128x128&v=2)
think I over researched . and now i'm confused .
are you better off when your new and green to getting duplexes and 3-4 bed units? or if you can swing in financially are you better off buying a complex? or say 16 - 24 units in a building?
My theory is basically . One roof.. instead of 16 roofs.. or 8 roofs (Duplex).. repairs would be less?? etc.
Everyone says . noobies should start out with 1 or 2 small properties etc..
I hate to waste time and money .. and if it's best to get a big complex or something full of units, cabins, condo's etc.. am I best off if I can swing it financially and just pay cash for a building full of units? if if at 1st i'm over my head.. I have friends who are contractors etc.. so I know I can call electricians, plumbers etc.. if need be.
thanks
Most Popular Reply
![Sarah Miller's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/271754/1621440088-avatar-sarahm4.jpg?twic=v1/output=image/cover=128x128&v=2)
If I were in your position of having enough money to buy something outright, I would be buying SO much more with financing!! Is there a reason you think buying everything outright is better than financing them and getting more?? I'm just thinking this way for simple math:
You have $500k. You spend it all on one 16 unit complex, after expenses you net $6500/mo
OR
You have $500k. You buy FIVE 16 unit complexes at $500k each with 20% down. After mortgage and expenses on all of them, you net approx $17,000/mo......
As for the risk aversion, I am just starting out and I wanted NOTHING to do with SFH. I thought they were a waste of my time and money. Although, I have a lot of real estate knowledge from growing up with a broker as a mother and a contractor as a father so... I was pretty ready to jump into the game head first with 2 duplexes right off the bat. It's been just enough for me. I'm staying busy, learning a lot, but not too crazy.