Investing 400k in real estate

[Taylor D'Ambrosio]

Hello,

I'd like to get your input on how you would invest 400 K. I am a 30 year old middle earner in finance and live in the Midwest. I do not work in real estate but understand the basics. I have 400 k that I would like to deploy for real estate and would like to start soon. My goal is to invest the 400k and have good positive cash flow a year at least 30k. By the time I'm 40, I'd like to be around 80 - 100k. I would like the investments to be mostly passive but hands on is fine too.

The asset category I am considering are single family/mulit long term buy and hold rental properties.

Should I split the funds and use down payments/mortgages or purchase cash and get HELOCS?

You all have much more experience than me, so I am hoping that you all will give me a sense for how you would handle things.

Thanks!

[Trevor Schmitt]

Hey Taylor, what a great opportunity you have in front of you. Nice work! 

I would focus on finding potential deals through analyzing as many single-family/multi-family investment properties that you can over the next few months. After doing so you will be able to identify the right opportunity... at that time you will be able to decide which route you would like to take. The property/situation and what you plan to do with it in the future will dictate if you should purchase with cash or mortgage the property. 

That is my two cents! I believe your time would be much better spent analyzing potential deals, and searching for those deals as opposed to trying to figure out the perfect scenario and how to allocate funds. The best route for you to take will become clear once you find that first property!