Am I over aggressive / careless investor?

[cavinvestor]

Here is my investment summary

1) Primary residence (Still paying mortgage)
2) Out of state investment property (Rental) closed few months ago - Making couple hundred dollars after Mortgage and other expenses.
3) 401k (Maxed out)
4) Roth IRA - Robot advisor

This real estate monthly positive cash flow has stuck my mind and I want to buy another one out of state.  Part of me says, don't do it as I haven't seen a full cycle in this out of state rental investment and Part of me says that this is the investment that gives positive cash flow and has appreciation.  My friends and family say keep the cash for the next downturn - I don't know when that is going to happen and we can never time the market. 

I want to hear suggestions from investment gurus here. 

Thanks in advance.

[waltworks]

If you post a breakdown of the numbers on the rental we might be able to give you a better idea. Cash flowing a couple hundred bucks a month is fine if you've included all your ongoing expenses (ie, putting aside money every month for 20 years to replace the roof, assuming some vacancy, etc) and the place was very cheap. If you just mean you're getting a couple hundred more than PITI, that's probably very bad. If you spent $300k on the place, that's also bad. If both, ouch.

-W

[sammybiker]

I think as long as you're not trying to time the market and plan to continue buying, especially if there is a downturn, you're okay.  Think dollar cost averaging.  As long as you're buying assets that are truly cashflowing (as Walt pointed out), why not.

[cavinvestor]

I bought a 120k property in Type B neighbourhood in Atlanta.  I make 200$ after all expense ( mortgage, prop tax, insurance, property management, vacancy , appliance insurance and misc expense).

Now I want to buy a similar one in or around the same area.  Most of the RE investors are going to Memphis Cleveland area and some how i feel it is cheap there for a reason and majority are turnkey properties (lipstick on the pig).

[Mr. Green]

What does the house rent for? Are you familiar with the 1% rule of thumb?

[LightStache]

If you buy the second investment property, how much would you have in RE reserves? You should be aggressive accumulating assets, but investment RE can go sideways fast and put you in the hurt locker. I had a situation where I had two empty HCOL rentals sucking $4k/mo for four months due to a negligent management company. My parents recently had tenants that totally destroyed the place and needed $10k to rehab. As long as you can suck up a $10-15k bill for a new roof, destructive tenants, or sitting through an eviction I would say pick up another one.