Advice on spending $85k-$135k to generate cashflow

Advice on spending $85k-$135k to generate cashflow

Chicago, IL · Member since 2017 · 6 posts · 0 votes
I have enjoyed the BP forums and resources these past few months though this is my first time seeking advice. I bought my first MFR deal within the last month here in Chicago. All going very well. Learning a ton and enjoying it. My initial deal, a 3-flat, cashflows about $800-$900/month. I am self-managing for now and am somewhat handy which comes in, well, handy. I have a full time, executive level job and am in my mid-40s. REI is my early retirement plan. My main objective is to generate $15k of reliable, monthly cashflow in the next 5-6 years with a buy and hold investment strategy. I will have access to another round of capital from my W2 job in October ranging from $85k-$135k. Trying to figure out the best investment approach to meet my objectives and would like to put this out to the BP community for your ideas. At this point, I prefer to have deals closer to home (Chicago area) though I realize that may be limiting. Is it better to buy fewer, more expensive deals that may cashflow more (though will require a bigger outlay of initial capital) or to spread out this capital in creative ways to fund a few deals?
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Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
8y

Think BIG.

In my experience and opinion, and you will receive a ton in the days and weeks to come, commercial multifamily is the way to go, especially based on your $15K/month goal. Self-management and local investing won't do the trick. You will need to find and/or partner on deals to scale as fast as possible. There are hundreds of blogs and podcasts to get up to speed on how all of this works. It will take time.

As a syndicator, of course, I'm biased but also more than happy to add my insights to your journey of gathering intelligence. Feel free to PM me to have a one on one conversation about your investing goals, expectations and opportunities. Let's explore if there's a fit.

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  • Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
    8y

    Think BIG.

    In my experience and opinion, and you will receive a ton in the days and weeks to come, commercial multifamily is the way to go, especially based on your $15K/month goal. Self-management and local investing won't do the trick. You will need to find and/or partner on deals to scale as fast as possible. There are hundreds of blogs and podcasts to get up to speed on how all of this works. It will take time.

    As a syndicator, of course, I'm biased but also more than happy to add my insights to your journey of gathering intelligence. Feel free to PM me to have a one on one conversation about your investing goals, expectations and opportunities. Let's explore if there's a fit.

  • Chicago, IL · Member since 2017 · 6 posts · 0 votes
    8y
    Thanks, Ken. I am open to commercial and certainly don’t expect to self manage. I currently have one property, though, so self management isn’t an issue. I’ll outsource property management at some point as my portfolio grows. The key for me is to source strong potential commercial deals and actually have the means to fund them. I’m good if these deals are not local but they need to be accessible. I’m not interested in buying sight unseen at this point. Syndication is interesting for the right deal in the right place.
  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    8y

    @Andrew Kasprzycki I think it would be better to purchase larger commercial/multi-family. If you are able and willing, look for properties in decent areas that you can purchase, renovate and then refi after you stabilize them. Go just north west of you to Kenosha, WI and you can find some decent deals in a city that is seeing some growth. Milwaukee, Racine and the suburbs will also have good opportunity

  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    You are definatly going to have to go much bigger if you intend to generate 15K monthly in positive cash flow in 5 years. That is a astronomical amount that will require a considerable amount of capitol. 

    Realistically you will be looking at 150 doors to sustain a reasonably guaranteed income of that level.  There is no possible way to achieve a guaranteed $300/door as you now believe you have.

  • Chicago, IL · Member since 2017 · 6 posts · 0 votes
    8y
    Thanks everyone. @Todd Dexheimer: great advice about considering key locations in Wisconsin. I’ve explored some options there over the last few month, mostly through LoopNet, to get a lay of the land. I realize my income objectives are ambitious but I do believe they’re realistic with the right moves.
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