I'd love some help determining the best strategies to help us reach our goals. Here is our situation:
- We are striving for a monthly cashflow goal of $20k/month
- We are currently bringing in $4k/mo in cashflow from current rental properties
- We have max $200k in the bank to help us reach this goal
- We currently do not have a consistent W2 income stream (only 1099) so it has been difficult for us to obtain loans
What investment strategies would you use to help us reach our goal as quickly as possible if you were in our situation? Go!
You are asking for a ten percent cash flow when you likely will not qualify for any loans. Its not likely to happen unless you go with very high risk pathways, and then you could loose everything.
SBA still has a COVID relief package in place. They are waiving the first 3-6 months of payments as well as the 3.5% loan fees, so there has never been a better time to buy a business.
SBA will require a 10% buyer's cash injection, so with $200,000 down, you could conceivably acquire a business valued at $2M and possibly more if the seller carries a note. With an acquisition like that, you should be able to exceed your $20K/month cash flow - though you are likely to buy yourself a job. Most businesses need hands-on owner oversight, if not owner operation.
Thank you @Charlie MacPherson ! This is a route we have considered, but haven't fully vetted yet. We'd prefer something a bit more passive that gives us the flexibility to travel or move around, but perhaps there are businesses for sale that meet those requirements. I'll take a look!
@Lynnette E. We are not expecting to be able to get $20k/month cash flow immediately. We understand it will be a process and build up over time. My question is more about trying to find some different strategies we aren’t currently trying that may help us hit this goal faster. For example, vacation rentals seem to be pretty hot right now and perhaps that may give us a better return on our investment for cash flow than acquiring another long term rental (albeit, a bit more risky). I’m just curious to hear what others would put their money in right now if they were in a similar situation as ours. Thanks!
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