Investing 100k in rentals for cash flow

[Jason Rostar]

Hey everyone! First post here :) I wanted to get some opinions on how/where you would invest 100k to produce monthly cash flow. How much cash flow do you think you could get? Would you buy one multi-family rental or a few single family rentals? 

No pressure, just looking for some thoughts! 

Thanks,

Jason

[Larry Fried]

Originally posted by @Jason Rostar:

I'm thinking of purchasing five 100K properties, 20% down on each. The hope is for 1-2K net income/month. Turnkey, multi family, or BRRRR and the area in which I plan to purchase are still the main questions. I would like to live close to my family in Oregon, possibly Portland or surroundings areas.

Thanks for the follow up!

Hi Jason. First, to get conventional financing, you can only do 4 mortgages (including primary) at 20% down on SFR. For #5-10 you will need to do 25% down on SFR. Next if you have $100k to spend you will need to also add in closing costs, including inspections and appraisals for each home, plus you will want to have a reserve for the unexpected. In short, $100k will not get you 5 $100k homes. Plus if you are looking to invest pretty much anywhere in any metro area of Oregon, $100k homes are pretty much a thing of the past, unless you are talking about a very distressed property. Even then...

So, if you are looking at the price point, I suggest looking elsewhere, like the midwest and certain southeast cities. Maybe working with a turnkey company in one of those markets, or if you want to get more involved build your own team to acquire, renovate and manage. All best in your REI..