Best 100k Investments/Triplexes

8 Replies

Hi all,

Pretty vague question, and I know it depends on an individuals specific goals... but I am curious to see what kind of responses this may get. 100k is not a lot of cash in Southern California. It could be put as (part of) a down payment on a 600k triplex that would net roughly $500 a month in positive flow. That sounds dismal to say the least. 

I have heard of SFR's in some states for as low as 30k that can rent out for $800/month each. I am not sure if my friends were feeding me bogus numbers or if those are legit. I've also heard of triplexes in Portland or Seattle that may be more affordable. What do you guys recommend for cash flow? Of course, long term appreciation is also a consideration but not so much a huge focus. Thanks in advance.

Yep depends. I’d buy for 40 and put in 60 and rent or sell in my market.

@Rupesh Singh I'm not a current investor (so take this with a grain of salt), but you need to avoid the hot markets if you want cash flow.  Seattle especially is pretty much all gambling on appreciation at this point, as the properties are valued so high that cash flow is extremely low to actually being negative.  My research and time spent networking has all come back to the point that unless you're getting a screaming deal in a hot market, the secondary (or even tertiary, in some cases) markets are going to be best for cash flow.  The Midwest tends to do better for cash flow as well.

I'll second the hot market sentiment. I'm exploring rental options in my local market, Seattle. It's hard to cash flow with 25% down. When you're talking about a half million dollar investment that borderline cash flows, it's discouraging.

Now I'm starting to think that buying several units with solid cash flow in a hopefully upcoming market is starting to sound better than any potential appreciation I'll get here in Seattle.

@Rupesh Singh $600k could get you a solid 4plex in a Seattle suburb like Everett, Tacoma or Kent. You could net around $1,000/mo cash flow and have a lot of potential for appreciation. That being said, you would have to put $150k down on a $600k fourplex.

Originally posted by @Grant Fosheim :

@Rupesh Singh $600k could get you a solid 4plex in a Seattle suburb like Everett, Tacoma or Kent. You could net around $1,000/mo cash flow and have a lot of potential for appreciation. That being said, you would have to put $150k down on a $600k fourplex.

 Grant, if you see any solid 4plexs from Everett down to Tacoma for $600k, please let me know. I haven't seem much for less than $750k.

@Rupesh Singh @Jon Ostojic

I Just saw a $280k Puyallup duplex deal come through from a wholesaler with market rents of $2,500.  Not exactly 1% rule, but it has high appreciation potential (although I wouldn't bet on it).  I'm primarily a flipper and the numbers on this one suggest it's more of a rental.  Let me know if you're interested and I can forward it over.

You might also try the BRRRR technique to get more out of your money. Buy a deal with 10% down and then refi to pull your cash out. It is higher leverage, but honestly I think you should analyze every deal to see if it would cashflow with 100% financing; if not, then it's probably not a good deal. Having to put a higher down payment in order to make something cash flow doesn't seem like a great strategy to me.

Thanks for all of the replies, everyone. My goal is to obtain zero financing and purchase a 2-4 unit property out right. This limits my options significantly. West Coast properties are on hold at this time.

I have come across some Ohio properties that seem to be of interest. I will be doing a bit more due diligence on it and can hopefully acquire something as soon as I find the right property. 

You hit it with "depends on your goals" @Rupesh Singh . Once you determine your WHY, you can create your goals and from your goals create your investing criteria. The situation you described is a horrible CoCR #, which sounds like you're in it for cash flow so I highly recommend setting one of your investing criteria to a certain CoCR %. 

And yes, I have personally purchased a SFR that rented for $600/month (sold this particular property last month after holding for 3.5 years for an overall 77.5% return!).

I also am in REI for the cash flow and appreciation is not a # I look at. Not a criteria I'm interested in and not something I review as to sway my analysis on a property. Does that make sense?

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