Creating cash flow with 200k cash

[Jessica Wood]

We are soon moving to the Minneapolis market, where I know the cap rates are tight and the market is a sellers market. We are looking to create at least $2,000/month in cash flow using 200k cash. 

Hard money lending seems like the “easy” route but obviously riskier. We would like to buy and hold single family or multi family real estate long term. We will be full time real estate investors, so no need to worry about 9-5 job restrictions. 

Any advice in navigating this would be greatly appreciated. 

[Cody Evans]

Hi Jessica,

First off, I am not an expert on this but I do know not having a W2 income makes it much harder to get a loan. So if you have 200k in the bank and thats it, you will not be able to use all 200k as a down payment unless you have stable income flowing in. 

I also recommend not being hasty. Stay on this site for 3 months while making a few posts a day to learn about what you are getting into. I would have made so many more mistakes had I not discovered this site. Investing can be a hell hole if you do certain things wrong. I am not sure what others advice is but you may want to save some of that 200k and only purchase one house to see how you do with management, contractors and all the other mistakes you WILL make when you are just starting out.

I hope this advice helps out and others chime in as well. You are in a good financial position if you have 200k saved up.