New To Investing, Looking To Cashflow 4k

Buying & Selling Real Estate
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New To Investing, Looking To Cashflow 4k

Court Kellum
Member since 2025 · 1 post · 2 votes

I have about 400k cash or so to invest.

I'm not looking to take out any debt, however I'm open to it, but is it possible to buy something with this amount of money and net around 3500-4000 a month?

Are there mentorships or consultants that can help guide me?

Either way, just curious if it's possible. Fortunate enough that if I can pull this off, that would be my freedom number.

Would love to grow a portfolio, but definitely need guidance. 

Thanks

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Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
11mo

I'd be careful announcing you have 400k to play with on here. You're going to have a bunch of people reaching out saying their way is the best way when really they're trying to sell you something. Not necessarily saying there are nefarious intentions, just be mindful of that and figure out what you want first. I think the fastest way to scale is by buying value add rentals with the BRRRR strategy but you have to be skilled at finding and negotiating really good deals, managing rehabs etc. whereas some people are happy just doing private lending at 10-12% interest

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  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    You're looking for about a 10% return. I'm getting that from performing notes. Look before you leap into any investments.

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    11mo
    Quote from @Court Kellum:

    I have about 400k cash or so to invest.

    I'm not looking to take out any debt, however I'm open to it, but is it possible to buy something with this amount of money and net around 3500-4000 a month?

    Are there mentorships or consultants that can help guide me?

    Either way, just curious if it's possible. Fortunate enough that if I can pull this off, that would be my freedom number.

    Would love to grow a portfolio, but definitely need guidance. 

    Thanks

    You might need to do two creative finance properties to hit that. Are you wanting to do this your self or do you seek training? You I don't think a traditional lender would get you there but, cash or creative finance probable would. What I mean is a combination of


    10 Low Cost Ways To Buy A House.

    • 1. Subject To (Subto) (Take over the mortgage & own the property)
    • 2. Land Contract (deed transfers when last payment is made)
    • 3. Wrap (seller sells with mortgage that mirrors their mortgage
    • 4. Wholesale (buy below market value)
    • 5. Abandoned/Zombie /Neglected (buying properties “off market” that others don’t know about, cheaply
    • 6. Seller Financing (Seller becomes your bank)
    • 7. Lease Option (Test the property before you buy)
    • 8. Foreclosures/Probate /Distressed (Buying properties at a discount below market)
    • 9. Assumption (taking over the loan of a specific property)
    • 10. Joint Venture with seller or investor (buy with a partner to cut costs and risk)

    What is important is to set your goal, plan a realistic approach and follow through.




    0Reply
  • Bill Goodland
    Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
    11mo

    I'd be careful announcing you have 400k to play with on here. You're going to have a bunch of people reaching out saying their way is the best way when really they're trying to sell you something. Not necessarily saying there are nefarious intentions, just be mindful of that and figure out what you want first. I think the fastest way to scale is by buying value add rentals with the BRRRR strategy but you have to be skilled at finding and negotiating really good deals, managing rehabs etc. whereas some people are happy just doing private lending at 10-12% interest

    2Reply
    • Eric Gerakos
      Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
      11mo
      Quote from @Bill Goodland:

      I'd be careful announcing you have 400k to play with on here. You're going to have a bunch of people reaching out saying their way is the best way when really they're trying to sell you something. Not necessarily saying there are nefarious intentions, just be mindful of that and figure out what you want first. I think the fastest way to scale is by buying value add rentals with the BRRRR strategy but you have to be skilled at finding and negotiating really good deals, managing rehabs etc. whereas some people are happy just doing private lending at 10-12% interest


       I don't sell anything.....

      0Reply
  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    11mo

    I doubt that you will be able to get 10% return on stocks, real estate or any other investment. UNLESS you are pretty good at picking stocks, marketing to find real estate or know a whole bunch about a certain industry.

    You have to have strong knowledge of whatever field that you are going to invest in. Are you marketing to find GOOD real estate deals? I spend a couple $1000 a month to find my deals. Some people spend more, some less.

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    11mo

    Develop some sort of subject matter expertise; otherwise, you're not likely to get close to that number. Historically, index funds outperform real estate with no leverage. 

    If you are open to a higher effort strategy, there are plenty of markets where you can have a paid off short term rental around $400k that creates $40k of net, after expenses income. You're likely going to need another $20-30k for make ready and furnishing expenses, though. That's easier said than done, and you're only going to create that level of income if you execute and self manage well.

    If nothing lights you up, I'd invest in index funds and pull money out at a 5% withdrawal rate (gets you halfway to $40k), stay completely liquid, and have none of the hassle factor.

    1Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    11mo

    No you will not hit 12% return in 2025. Realistic is 4-7% COC anything higher will be on paper BS with low grade tenants and the costs that come along with them. If you use leverage (mortgage) you can hit the equivalent of a 12% COC after 2 or 3 years from rent growth. $400k is a solid start, look into some class A/B 4 units. Congrats on saving up that much capital.

    0Reply
    • Stan J.
      Member since 2025 · 43 posts · 8 votes
      11mo
      Quote from @Henry Lazerow:

      No you will not hit 12% return in 2025. Realistic is 4-7% COC anything higher will be on paper BS with low grade tenants and the costs that come along with them. If you use leverage (mortgage) you can hit the equivalent of a 12% COC after 2 or 3 years from rent growth. $400k is a solid start, look into some class A/B 4 units. Congrats on saving up that much capital.

      How many deals do you see in the Chicago area that go off market?
      0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    It's unlikely with long term rentals. You'd have a better chance of hitting that number with medium or short term rentals, but even so, that still might be a lofty goal 

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