Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello, my friends, and welcome to another episode of Ask Marco

where I answer your investing related questions.

If this is your first time here, remember to hit that subscribe button, so each and every week you are

notified of when we put out a new episode. So today's question comes from Clay and

generally his questions about diversification in

multiple markets and he says hello Marco love the podcast keep it up

thank you first question we have five properties in New York State in the same city.

The cash flow is great and reliable.

Mostly 10% cap rates or 1.5% to 1.7% rent to value ratios, which I will explain in a moment.

He's saying these are C plus to B minus neighborhoods.

I'd like to buy 20 additional properties but not sure if perhaps I would be better off

diversifying away from the same city that I'm currently in.

Perhaps into Indianapolis or Memphis, for example, money would not go as far and returns would be lower, but I'd be diversified.

His second question here is, all of my loans are residential, as all of my

loans are residential as all of my properties are for family or less. I have six loans currently but will easily surpass 10 if I am to reach my 25 property goal.

In this case, would you recommend commercial loans? Everything I see and here is 10

loans or less. It seems to be the magic number for residential above which you have to go commercial which doesn't seem to

have as favorable terms I look forward to your answers all the best clay clay thank you

for your two questions and there's probably more buried in there if I was to really

just think it through.

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