Getting started and need a strategy

[Ken Simms]

I recently sold my home, which had a fair amount of equity, moved to Colorado and purchased a small, much less expensive older home in need of a rehab, which I am taking on almost entirely on my own. I currently have approx $250k to invest in rental properties and need advice on what my best strategy is for cash flow. One caveat is that I won't qualify for a standard loan as I currently have no W2's (long story, but I do have decent credit). 

One option I have been mulling over is to use approx $75k to build an adu in my backyard and rent out as a STR. Then use the rest to buy rental properties in another state, as prices don't really pencil out locally. Should I use an asset only loan to help buy multiple properties? For instance buy 3 SFR, each around $100k with 50% down on each.
I have been searching for multi family properties, but everything I see that is semi affordable looks to have relatively low ROI and look kind of run down. I realize there are a thousand ways to answer my dilemma, but any thought or advice would help me as I take the step into becoming a landlord. Thx

[Tyler Everidge]

Hey Ken, 

There are certainly lenders I can put you in touch with that will be able to answer your financing questions better than me, but an asset loan would give you more leverage and higher ROI than straight using cash. Another option would be to do a delayed financing (purchase in cash and then put a loan on the home, giving you access to your cash again).

If you are looking for a high ROI, I would consider areas in the midwest. I work with a lot of out of state investors right here in Dayton, Ohio looking for high cash flow. If you are interested in Ohio at all feel free to reach out to me anytime.

Best of Luck!