600k to invest any suggestions on the best strategy for leveraging?
My second question is if we have 600k to invest in rental properties and a credit score in the 700s what are some of the best investment strategies? We heard that you can buy up to 10 properties with loans from the bank as long as you put 20-25% down. (we heard that banks just started doing this about a month ago, why would they change their policy all of a sudden?)
We were sort of looking to buy SFRs in Phoenix or Las Vegas since it is not too far away from CA and you can find properties that are close to the 2% rule. We are a little hesitant about multi unit apartment buildings because I think you would really have to make sure it was an excellent deal before you put all your assets into one deal like that.
Our main goal is maximum cash flow.
Is it better to use leverage and get loans for 10 houses worth 50k each that rent out for close to 1k a month even though the neighborhood might be kind of bad? With ten 25% down payments that would take up 125k of the 600k so we would still have 475k to invest.
Or would it be a better use of leverage to get loans for 10 houses worth 100k each or more in better neighborhoods that might not rent out for 2k a month (maybe 1500)? I guess the advantage here is that you would have more valuable properties (using mostly the banks money) in your portfolio but your cash on cash return would be lower. If we got 10 loans for ten 100k properties with 25% down payments we would have spent 250k of the 600k and be left with 350k.
With the remaining money should we try to find other lenders for more sfrs? Invest in a multi unit? or buy some sfrs all cash at auction and rent them out?
Any suggestions on these topics?
Thank you in advance.