Is it wiser to buy two cheaper investment properties than one more expensive as an initial investment stra… by @R44D
Answer by Raad Ahmed:
Many factors are going to influence which is the best strategy for you. As with any investment, you have to weigh the risk vs. return. Both of these scenarios have the potential to be successful, but there are some considerations you need to think about.
Are you familiar with real estate investment? It’s important that you take the time to understand the marketplace, income potential, and costs associated with the type of properties you want to invest in. Before you invest a dime, you should take the time to educate yourself as much as possible. Are you wanting to sell the property or rent it? This will also influence the amount of risk or reward either now or long-term.
The thing about real estate is that you don’t want to spread yourself too thin in terms of time or money. If you have a substantial amount of money to invest, it may be better for you to invest in a “safer” property. This means a property that has been successful leased or sold previously, is in good condition, and is in an attractive area for buyers or renters. However, if your funds are limited or you simply don’t want to invest a large sum of money right away, you may be better off purchasing two cheaper properties and then increasing your chances of more income from two tenants. However, having more than one tenant can come with its own set of issues such as the possibly of more damage or defaulting on lease agreements.
There’s no short answer to this question nor is the answer going to be the same for every single person. If you’d like more information on investment properties and understanding the best solution for your specific situation, we are happy to help!provides legal advice for individuals interested in real estate investment. The lawyers on out site have helped many people w/ the legal side of real estate investment. Contact us today for a free initial consult. Good luck!