Case Study: 3 Properties vs 5 Properties — Same Capital, Very Different Outcome

The Common Framework

• Total available capital: €600,000

• No leverage (for a clean comparison)

• Residential assets for long-term rental

• Time horizon: 10 years

• Private investor (not a professional operator)

Scenario A: 3 Properties (Focused Strategy)

Structure

• 3 apartments × €200,000

• Strong micro-locations

• Functional layouts

• Low maintenance exposure

Income

• Average net rent: €750 / month / property

• Annual net income per property: €9,000

Total annual income:
3 × €9,000 = €27,000

Maintenance & contingencies

• €1,000 / property / year
  Total: €3,000 / year

Net annual result

€27,000 – €3,000 = €24,000

10-year outcome

• Net rental income: €240,000

• Management: controlled

• Liquidity: high (3 clean assets)

Scenario B: 5 Properties (Stretched Strategy)

Structure

• 5 apartments × €120,000

• Compromises on location/building quality

• Older assets

• Higher operational friction

Income

• Average net rent: €520 / month / property

• Annual net income per property: €6,240

Total annual income:
5 × €6,240 = €31,200

(On paper, this looks better — initially.)

Maintenance & contingencies

• €1,800 / property / year
  Total: €9,000 / year

Net annual result

€31,200 – €9,000 = €22,200

10-year outcome

• Net rental income: €222,000

• Management: demanding

• Liquidity: lower (5 uneven, lower-quality assets)

The Difference Spreadsheets Don’t Show

Fatigue & decision quality

With 5 properties:

• more calls

• more “small” issues

• less time for strategy

With 3 properties:

• clarity

• control

• the ability to plan exits

  
  human limits often matter more than financial ones.

Liquidity & exit

• 3 assets at €200,000 → easier resale

• 5 lower-quality assets → longer selling time, deeper discounts

And as shown in “Selling a Property & Reallocating Capital”,
performance is defined at exit, not during ownership.

Final Comparison (10 Years)

Scenario A – 3 Properties

• Net income: €240,000

• Low operational drag

• High liquidity

• Clear decision-making

Scenario B – 5 Properties

• Net income: €222,000

• High operational drag

• Lower liquidity

• Increased fatigue

👉 Fewer properties, better outcome.

The Role of Poli Real Estate

At Poli Real Estate, portfolio strategy is not about asset count.

It is about:

• manageability

• liquidity

• exit optionality

• and long-term sustainability for the investor

Because a portfolio should grow without exhausting the person behind it.

Conclusion

The same capital can:

• work for you

• or slowly work against you

The difference is not:

how many properties you own

But:

how many you can manage well for many years.