I just wanted to get people's opinion on what you think is the better way to set up an investment property. Ultimately the idea would be to pay a property off in full and have a few hundred a week in income. So for example:
If you had $100,000 ready to go, and thought it was time to get into the market for an IP. Would you consider it a better option to use the whole 100k as a deposit, and positively gear the property (say worth 300-350k). Or would some consider it a better option to split it and buy two properties with a 50k deposit each, and ensure they are cashflow positive?
The main difference that I could see is that you would obviously have smaller repayments in the first scenario, allowing you to pay the loan down much faster, while still claiming depreciation etc, which in turn would lessen the amount of interest you are paying in the long run, and gaining equity faster for your next property.
However the second example exposes you to 2 properties that are putting cash in your hand each week, and you are able to pay off more than the required amount of each loan each week.
Would the latter scenario only be a better, more viable option in a property bull market? As your leverage allows you to see capital growth on 2 properties instead of one. And the former scenario better in a stagnant/falling market?