Straight to commercial multifamily?

[Greg Lyons]

Will be seeking to invest between 400-600k into multifamily, aiming for maximal cash on cash return. Initially thought duplexes or triplexes in B class properties in Cleveland suburbs (out of state, have family connections) but am debating if 5-20 unit commercial multifamily would be faster route to growing passive income (i know it won't be truly passive, lot of work to get it running well, management in place, etc). Appreciate any guidance from more experienced investors. My goal is to ease out of W-2 in the next 5 years if possible through out of state investing from new home base of Idaho.

[Colton Hahn]

Quote from @Greg Lyons:

Will be seeking to invest between 400-600k into multifamily, aiming for maximal cash on cash return. Initially thought duplexes or triplexes in B class properties in Cleveland suburbs (out of state, have family connections) but am debating if 5-20 unit commercial multifamily would be faster route to growing passive income (i know it won't be truly passive, lot of work to get it running well, management in place, etc). Appreciate any guidance from more experienced investors. My goal is to ease out of W-2 in the next 5 years if possible through out of state investing from new home base of Idaho.

If your main goal is to get maximum cash flow, why not park that cash with a syndicator with a high CoC %? If you are only going to get say 11% CoC (really hard to get, true number is usually closer to 9% but lets say 11%) after expenses, why go through the trouble of owning actively when you can get slightly less in a passive way(10% in some funds like we and others offer) but you actually save yourself time and energy? What is your free time worth? Food for thought