How to Recoup $3k/Month

[Kay Sam]

Looking for BEST way to make $3k/month. Trying to preserve liquidity I have left after 5 RE flips in FL, IL & TX. Ideas? I don't want to tie up a LOT of cash. I really don't want to do HML either. Thoughts? I did all my flips remote except the ones in IL.

#recoup

[Dan H.]

Quote from @Kay Sam:

Quote from @Kenneth Garrett:

@Kay Sam

If you are trying to hold onto your money from the flips without spending it, I think you have a couple options.

Option 1 do another flip or two take that profit and buy a rental. Could be LTR, MTR or STR. As an example, a MTR or STR in the correct location will get you $3000 a month on average.

Option 2 BRRRR your next purchase and refinance your money out and see how the cash flow is. You can use the example in one above. It might take a few properties. I'm not sure what the goal is other than the $3000 a month.

Not sure how much money you have from the flips, but if you became a private lender at 12% interest and 2 points on a 100K that would generate annually about $14,000 a year.  If you had 200K that would get you closer to your goal.  

Hi Kenneth!  I am not yet at that level of investing to offer $100k PML.  I would eventually like to do MTR.
I've lost about $40K over the last two years so.... a decent chunk to me.  I only have about $50K left so holding on like it's gold as I wrap up my last project. 

Did you learn from the efforts?   If so, $40k is not too bad.

here are some lower cost RE possibilities.   I don’t claim any of these are easy and/or without risk
- get a RE related job.   This can include getting your RE license.
- MTR/STR arbitrage.   Tough to find willing owners and you do not get to benefit from perhaps the most impactful source of return appreciation (also get no equity paydown or significant tax benefits).
- birddogging and wholesaling.   If you go this route, be ethical/honest.
- look to partner where you provide skills or labor and partner provides much of the finances.

ones that ideally are short trap of your money.  Again not stating they are easy and/or without risk
- flipping: ou have tried this but maybe with the lessons learned would have greater success going for reward.
- brrrr.  Lots of work.   Some risk, but outstanding upside if you can pull off an ideal Brrrr.    This is how I was able to scale in RE and where I have made much of my money.

my opinion is that RE is more challenging now than in the recent past.   Various studies support my belief even if realtors, lenders, brokers, wholesalers, etc want to convince you otherwise.  So whatever path you take be careful.  Run conservative, thorough, and accurate projections.   Run scenarios with various risks actualized.   

by the way RE will not always be the best investment option available.  I suspect the magnificent 7 has produced better returns over the last 5 years than the majority of actively managed properties.   The Mag 7 run will not last forever, but do you think this is the year their run ends?

good luck