Look for Strategy/Suggestions to generate $10000 in Rental Income in 5 years

[Udaya P.]

I have $100,000 with me. 

My goal is to earn $10,000 per month in positive cash flow(Passive Income) in 5 years time frame.

I am a new bee and new to investing in real estate/rental properties.

I am looking for strategy/suggestions from all the experts in BP in order to achieve my goal.

Some of the ideas, I am exploring are:

-Buy 3-4 properties for 35-40k in mid-west, which generate $500-$600 positive cash flow

-Use 100k as down payment(25%) and use leverage to buy 1 or 2 properties in high priced areas. 

-Invest in REIT or other funds

Any suggestion/strategy is appreciated.

All suggestions/strategies are welcome to achieve my goal of $10000 in passive income in 5-years

Thanks

--uday

[Jeff McCaskey]

@Udaya P. Welcome to bigger pockets newbie sir!!!

Well 100 is a nice number to start with.

I think you were on the best track with the midwest comment and investing there, your money will go further for sure.

You might want to consider being a private lender if you want some very passive money.

I say this joking but also seriously, if you were interested in being a private lender you could loan it to me. I have been looking for private money and have some people who will be able to do something in the future but not at the moment. I could make you 10K in interest in the next 3 months. I know that's not quite the 10K per month you asked for but 3 months is quite a bit shorter than 5 years. And I could repeat that performance over and over and over again.

Part of my last statement is to demonstrate that I'm in the midwest and I could get those results for a private money lender doing my own deals and if you want to be a property owner you could do the same thing. Or you could act as a private lender and make great money without what amounts to a lot of extra work.

Either way, you have a hell of place to start from and that's pretty awesome Udaya!!

Let me know if I can help you out in any way