More- smaller properties or 1 big one?
Hello everyone. 
I'm trying to get some insight on whether it's better to have multiple small properties, or 1 bigger one. I've been a multi location restaurant operator for a while now. Have never owned the dirt. I've also had a couple of multi family units and have experience in that area. Currently live in a triplex and rent out two units. All the work over the years has basically been to get my foot in some larger commercial real estate deals. And it looks like it's finally time. 

I plan to basically cash out and have been actively looking and various deals. My question is if there is a common outlook on whether one property is better than 2 or 3. For the purpose of this exercise, let's say I have 1.5 million to use. Regardless of loans or whatever - is it better to have 3- 500k properties at a 5% cap rate or 1 at the same? Any thoughts on area of properties? Industrial seems to have dodged the last 4 months as well some retail. But does having 3 different properties count as diversification here? Or 1 larger longer-term tenant? I hope the question makes sense. 

Thanks!
[{"id": "fv1o58p", "text": "You have a little bit more security with multiple tenants", "replies": [], "depth": 1}, {"id": "fv1qa75", "text": "More problems with multiple properties, but the pros are you get a more a diverse income source.  If it\u2019s your first endeavor I\u2019d go with multiple so you have the flexibility to sell half if needed and you\u2019ll be able to see differences in each so you can know what to look for moving forward.  In this market you need to stay fluid.  Buying one big property rn is like going all in while the casino is on fire, a very risky move but it could pay off big with less effort and complications.", "replies": [], "depth": 1}, {"id": "fv1qvk0", "text": "Imo it\u2019s not quite time to pull the trigger. We\u2019re at the beginning of a worldwide depression that will surely spell retraction for CRE properties.  The question isn\u2019t if, but when the prices will start to reflect this.  Wait for eviction moratoriums to end later this summer at least and keep your eye on the market in the meantime.", "replies": [{"id": "fv26h0q", "text": "Office and Industrial Broker here. Going to mirror this comment. \n\nWhile I am hopeful that the market is going to be coming back, I am a little concerned with how fast it has come back. Feels like either a dead cat bounce or irrational exuberance. \n\nPersonally seeing groups going out and looking in the market to buy. Leases are doing short term (less than 1 year renewals). Big guys really do not know what they want to do right now. I am not seeing owners drop their prices by a significant amount. For the most part they are holding firm. \n\nThat being said an office investment deal I have is having trouble getting financing from a traditional lender. Longer term leases and decent local credit which 6 months ago would have been done in a New York minute. \n\nThe distressed asset guys I hang out with are getting really busy same with a lot of my attorney friends that specialize in bankruptcy. A second factor is the number of bad car loans out there. \n\nLastly, if you are in the US we have a fabulously contentious election about to kick off. The market will react to the election. \n\nIf you have to move, make a move, but if you have time be strategic.\n\nPersonally, I would look at multi-tenant flex space. \n\nExample of investor -  [https://www.bkmmanagementco.com/](https://www.bkmmanagementco.com/)", "replies": [{"id": "fv2rdpb", "text": "This was very helpful. Thanks so much.", "replies": [], "depth": 3}], "depth": 2}, {"id": "fv2rfy2", "text": "Thank you very much!", "replies": [], "depth": 2}], "depth": 1}]