My wife and I are just starting in the rental RE. We have purchased a SFR (cash negative) in Sacramento, CA area few months ago. We know that it is currently cash negative but given our income from W2, we are able to cover that for now . The goal then was to build some equity on it long term and refi when the rates go down.
Looking for the next investment suggestions. We do not want to take another cash negative property, so looking for cash positive options. We have reserves to do 20% down on ~500k properties. The goal for us is to scale our investments so we can get around 2k/month in the next 2-3 years
One thing that hasn't been mentioned yet is dividend stocks. Most investment vehicles RE-related aren't truly as passive as advertised in my opinion (with syndications you've got to put in the work vetting sponsors (a lot of them are having trouble recently, and it's not passive for the investor when the syndication starts having capital calls or stops distributions...), and with private lending you've still got to have some experience and understanding of the risk, know how to protect your principal investment, know how to set up the loan terms and contracts to protect your capital, and know what to do in case the borrower isn’t able to perform).
Hey Venkat, the only way you're going to build that kind of cash flow in your stated timeline would be going out of state.
A market like Detroit (I'm very biased and invested there) cash flows well and there's a ton happening in the city in terms of revitalization and investment.
With $100k you'd likely want to focus on BRRRR's so you can recycle the cash and do it again.
Lots of folks will say this can't be done from out of state, but it can. You just have to be really smart about it and careful who you work with.