Restructuring & Looking for Cash Flow

9 Replies

Hi BP Community,

My wife and I became accidental real-estate investors due to us moving to different cities for work and we ended up buying and turning into rental when we move.  We were fortunate enough to be in the location that return us (on paper) with good appreciation but not so good cash flow.

I am considering selling couple of our rental that would should us about 450K in equity and re-investing that into multi-family units. I am hoping to find unit that would attract to more quality tenants & give us 10%+ CAP rate and hopefully 3K-5K in cash flow per month. Is that possible? I am still doing research through forums in BP and turnkey properties offering.

We both currently have good paying W2 job, so I think financing our deal should be okay.

Thanks in advance!

Myo

That is very possible.  We just sold a 12 plex that hit those #'s.  Those deals are rare, but they are out there.  Have you tried looking on loopnet.com?  That a good spot to find multi-family.  Most will be priced high, but you never know what someone will take.

@Myo Thein

Welcome to the site.

TONS and I mean TONS of threads about turnkey. Lots of back and fourth. The community seems pretty split on the topic.

Good luck to you & I'll see you around the forums.

@Myo Thein

I would first check Loop Net and then maybe contact a RE Agent in the areas that you are planning on investing to see if they may know of some good deals... I think $3k-$5k Cash Flow is very achievable in certain areas, probably Midwest

Originally posted by @Myo Thein :

Hi BP Community,

My wife and I became accidental real-estate investors due to us moving to different cities for work and we ended up buying and turning into rental when we move.  We were fortunate enough to be in the location that return us (on paper) with good appreciation but not so good cash flow.

I am considering selling couple of our rental that would should us about 450K in equity and re-investing that into multi-family units. I am hoping to find unit that would attract to more quality tenants & give us 10%+ CAP rate and hopefully 3K-5K in cash flow per month. Is that possible? I am still doing research through forums in BP and turnkey properties offering.

We both currently have good paying W2 job, so I think financing our deal should be okay.

Thanks in advance!

Myo

 Why aim so low?

Thanks all. Yep, I have been using LoopNet to look around.  I just am not sure about location yet.  My preference is California / Oregon (just personal preference), but it looks like I might have to look into midwest, which I am fine with.

@Richard Dunlop : care to elaborate on what I can aim?  I am not against with making more :)

Originally posted by @Myo Thein :

Thanks all. Yep, I have been using LoopNet to look around.  I just am not sure about location yet.  My preference is California / Oregon (just personal preference), but it looks like I might have to look into midwest, which I am fine with.

@Richard Dunlop: care to elaborate on what I can aim?  I am not against with making more :)

There are markets where you can get Cash Flow better than you're asking for AND Appreciation going forward AND good quality tenants.

(I count 2 lawyers and 1 doctor among my tenants.)

Be very careful about TK  investing.

Though it may be ideal to invest in your backyard @Myo Thein with your target returns may be a little difficult. As mentioned above the midwest maybe an option to consider. 

When searching for a market I would look at the following factors. Job growth, landlord/business friendly, low unemployment and also population growth. 

I wish you the best of luck!