How to maximize $200K in cash

Question

From the sale of a few properties we invested in a while ago, we stand to gain about $200K cash back. We're hoping to re-invest in property within months to avoid getting taxed.

The problem is, we're aiming to maximize this capital to get a good monthly income. We're hoping for around $4K a month. How can we achieve this? Any tips? Commercial property, apartment buildings? Strip malls, retail stores? What would you guys recommend?

Shazia Ali · Answer

Sorry if my original post wasn’t clear enough!

Shazia Ali · Answer

Also we are hoping to look around at some good markets, not necessarily the state we’re in. So was hoping someone could give some feedback about markets they’ve invested in.

Shazia Ali · Answer

Although we are hoping to get something around $700-800K.

Shazia Ali · Answer

@Josh

@Josh Mitchell yes. We want to use the cash as a down payment on a $1mil property. Is it unreasonable to expect at least $4K a month from a property with multiple units?

Josh Mitchell · Answer

You will be doing a 1031 exchange on this money I assume? With $200k you could get into a $1mil property which could provide you with multiple units based on your buying location. I agree with @Mark Creason that the 24% CoC return is high. If you can find that, please let the rest of us know where it is!!

Shazia Ali · Answer

Well we want to use the cash as a down payment on a property with cash flow. At least that’s the idea. I’m trying to see what route some others may have taken, and the tax benefits, pros and cons of their approach. For example, is it better to buy smaller condos, an apartment building, a strip mall, etc.

Mark Creason · Answer

So you are looking for a 24% cash on cash return?

Shazia Ali · Answer

Also, any particular markets you guys would recommend?