Sydney: Cheap or Midprice house advantages?

[Seymour]

Hello. I'm new to this forum and new to property investing. My wife and I are looking at buying our first investment property/properties. We can probably spend up to 850 grand.

We've just received Residex's Top 100 capital growth report on Sydney. Makes interesting, if at times confusing, reading. It identifies quite a few cheaper suburbs out west that are predicted for good capital growth and get quite good rental yields. We could afford to buy 2 or 3 houses in these suburbs, instead of 1 in the inner west.

However, 3 houses sounds to me like 3 roofs to fix, 3 hot water systems to replace, 3 times as many walls to get repainted. Perhaps these houses might offer better yields but the upkeep seems like a fairly major downside that no-one seems to mention.

Any thoughts welcome?

 

[Propertunity]

However, 3 houses sounds to me like 3 roofs to fix, 3 hot water systems to replace, 3 times as many walls to get repainted. Perhaps these houses might offer better yields but the upkeep seems like a fairly major downside that no-one seems to mention.

Hi Seymour, welcome,

Lots of houses Vs one big house
PROs:
Diversifies risk:
1.Property goes thru flat periods. If you have them scattered, chances are one is going up in value somewhere.
2. They won't all be vacant at once - cash flow OK
3. In a bad event - land slide, bush fire, tsunami, drug house confiscated, plane crash, mine subsidence, flood, contaminated site, insurance claim dispute, etc - unlikely all houses will be affected
4. Dodgy REA PM keeps your rent and does a runner - not all do this
5. Tenant from hell - only a small %

CONS:
As you say:
1. 3 lots of PM fees, rates, maintenance