Best Cash on Cash returns advice needed
I have a good amount of equity in a primary residence and want to pull it out to invest in one or two commercial, multi-family buildings. The trouble is that I can't find anything out there with a cash-on-cash return that approaches my 10% threshold. This is because of the 5% I'd have to pay to pull the equity out of my home.
I've been looking at commercial multi-family for a couple of reasons. A. I want a passive investment (not interested in managing multiple homes myself) and B. Value added to a multi-family through rent increases, cap ex, better management, etc. nets value add immediately (versus SFH which follow the neighborhood appreciation rates).
I would like to build an income portfolio over the next 10 years at which point I'll retire and live on the income.
I'm not married to the idea of multi-family, so any advice on where to seek higher cash-on-cash rtns is appreciated.
Danielle