Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes
If we were to have $500k cash available to invest, what strategy could we use to get the maximum passive cashflow. Looking for ideas with and without leverage.
Put as many as you can on a 30 year mortgage ASAP while rates are low. Then use the cash flow to pay them off. With 500k, you can easily max out the Fannie Mae limit. If you do not need the cash flow now, then I would use the left over money after financing 30 yr mortgages and get 10 and 15 yr mortgages through commercial loans. If you need the cash flow now, then still max out the fannie mae and use the left over money to pay cash. I would focus on duplex, triplex and 4 plex's. Reason I would focus on the multi-family is because you can get a 30 year fixed rate mortgage on those properties and because it creates more income in fewer locations. Much easier to manage that way.
First of all, I wouldn't publicize on social network how much money you have.
Second of all, I second what @Todd Dexheimer stated. I'd add when evaluating these options, look at the returns as well as tax consequences. I'm assuming you're a W-2 employee, so look for ways to add long term capital gains, appreciation, etc, and avoid ordinary income that will be taxed at your W-2 rate. Consult with your tax accountant further on the topic.
If you'd like to chat offline, feel free to PM me.