How Many Properties Should You Really Own?
If you’re reading this, chances are you already own an investment property—or you’re thinking about getting into the game. And once you’ve made that first leap, the question inevitably comes up: How many properties should I aim to own? Is one enough? Is ten too many? What’s the “right” number?
Let’s break that down, not as a one-size-fits-all answer, but as a framework grounded in strategy, cash flow, and sanity.
One Door = 100% Risk
Owning a single property is how almost every investor starts. And there’s nothing wrong with that. But from a financial resilience standpoint, it leaves you potentially exposed. If your tenant moves out unexpectedly or stops paying, your cash flow goes to zero. You still owe your mortgage, taxes, insurance, and upkeep—but your income stream is gone.
I’ve had this play out personally. I own properties in Texas, Tennessee, and Missouri. When a tenant moved out of a Missouri property recently, I had to cover repairs and turnover costs, coupled with a few weeks of vacancy. But I wasn’t panicked—my other properties in Dallas and Nashville were still cash-flowing, so the portfolio absorbed the hit. That’s one of the clearest advantages of owning multiple doors: you reduce volatility. My goal is for my portfolio to be cash flow neutral as a worst-case scenario - meaning the remaining rents should cover all ongoing operational costs even with the occasional vacancy.
So, How Many Should You Own?
There’s no magic number—but there is a sweet spot based on your goals. For most of my clients, owning 3 to 5 properties creates meaningful monthly income while staying manageable in terms of risk, oversight, and financing. It also depends on what % you aim to have in real estate of your total assets—and while that’s a personal preference, many experts suggest around 20–30% is a balanced target for long-term growth and diversification.
If you have the funds, buying two properties instead of one at the outset can make sense—especially if you’re using a strong Section 8 market like Dallas, where cash flow is stable and predictable. But that comes with a caveat: unless you have professional property management or significant experience, starting with multiple doors can feel overwhelming fast.
The real test is not how many but how prepared you are to scale. Can your reserves cover a month or two of no rent from one property? Do you understand local landlord laws? Are you working with a team who can help?
The Tax Advantage of Scaling
From a tax perspective, owning more than one property unlocks more opportunity. You can:
Depreciate each property separately, lowering your taxable income.
Deduct shared business expenses (like bookkeeping, property management, and travel).
Potentially qualify for real estate professional status if you’re active enough, giving you access to deeper deductions.
Every property you own gives you a larger base to work with. And tax season becomes a little less painful, especially with a savvy CPA who understands real estate.
More Doors, Lower Costs
At SolMidas, we’ve structured things so that owning multiple properties actually reduces your overhead. If you’re using our property management partner, we’ve pre-negotiated lower fees for multi-property owners. That means your second property doesn’t just add income—it adds efficiency.
And if you’re self-managing? Even better. You can buy paint, filters, hardware, and supplies in bulk. I know a few clients who keep a stash of touch-up paint and outlet covers in the garage—because when you own four homes in the same zip code, little repairs add up fast. Scale = savings.
Extra Insight: Financing Strategy
One other critical piece to consider as you expand: how you structure your financing. Most investors start with conventional loans, but by your fifth property, lenders start treating you differently. Rates may go up, and requirements may tighten. That’s why I always recommend planning two or three steps ahead: stagger your purchases, understand DSCR loan options, and keep your debt-to-income ratio clean.
One thing to keep in mind is that cash flow is not just your operational income (i.e. rent less expenses). There is also a benefit in increasing property values as well as equity buildup if you are financing your investment home. That’s how you build momentum—by making your portfolio work for you.
Final Thoughts
There’s no universal answer to “how many is the right number”—but I’ll say this: if your goals are cash flow and long-term equity growth, the real question is when you’ll be ready for the next door, not if. One property is a great start. But a thoughtful, scaled portfolio is where real financial freedom starts to take shape.
If you’re wondering whether it’s time to go from one to two—or from three to five—let’s talk. I’ve been there, and I’ve helped others walk the same path with clarity and confidence.