100k to burn, best cash out strategy?

[Adam Boonzaayer]

Hey all,

I have a kind of unique situation. My wife and I (we're 25 and will have no debt) are about to close on the sale of our primary and make about 100k, by a stroke of luck, and some sweat equity. Our goal in the near future is to gain financial freedom through owning rental properties (yep, we read rich dad poor dad/cashflow quadrant). We have planned to start out with buying small multi's and moving up to larger complexes, but that's where things get tricky. I have not had a w-2 job in over 2 years, and my wife will be working part time (having kids soon) after we move. I would like to buy as many small multi's (probably under 5 units as there are more available) as we can get right off the bat (i'm talking 30+ units this year), but I'd like to be able to pull cash back out to keep buying. What I have planned so far is: buy with a personal cash/hard money mix, then cash out refi. But from what I can tell i will have a hard time with a cash out refi and no w-2. we both have great credit (over 750). Will a portfolio lender be the best bet for cash out? I just came from reading 

https://www.biggerpockets.com/forums/48/topics/460...

awesome content about avoiding the seasoning period, but my takeaway was that we won't qualify individually with no jobs..  I have been a student of real estate investing for the last 5 years and really hate working to make other people money (w-2). 

Who has a strategy to make our dreams come true?

Thanks a billion

Adam

[Roshan K.]

Originally posted by @Adam Boonzaayer:

@Storm S.

Maybe after I've bought as many properties as I can handle I will start funneling cash flow into a lower maintenance investment like you mentioned. I'm looking for big cash flow right now to live off of

 100K is going to be hard to make work to get cash flow to live off of. 

I was in the same boat a few months ago with exactly 100k as well, and I bought 8 properties on a portfolio loan. I now cash flow $3400 a month if no expenses, no problems, and 100% rented. But that has never worked out. 2 houses had bad tenants and needed to be vacated. Multiple small expenses and 1 big electrical one at the tune of $4500. So I don't think you have enough money to put down to cash flow well. Maybe it can help you supplement an income, but you're most likely going to need either some kind of job or more money to put down if you want to live off the cash flow.