Strategy with $200k to begin Real Estate investing Journey

[Sean Winters]

Hi there,

I am so excited and ready to begin my real estate journey and very happy to have found this community. I have saved up $200k that I am ready to invest with the goal of being able to leave my job so i can begin a new career risk free as a therapist/healer. I live in SF and have begun making relationships with property managers, contractors, agents and lenders. My hope is that I can learn if my goal is reachable and how you would play things out in this situation. Looking forward to it!

Current Situation:

30 years old 

$275k/yr income

$3k month rent (option to move home to be rent free)

$200k to invest in real estate

Goal:

$5k/month cashflow to quit job in 4 years or less

Ask: Is my goal reachable? What strategy would you implement with this situation?

[Jaysen Medhurst]

I'm not following your plan here, @Sean Winters. You're going to quit your current job on ~20% of your current salary? That doesn't seem reasonable. That said, if you were to focus on value-add MFR properties in a good cash-flow market, I think you could get to $5k/month. Since you're focused on cash flow, you'll most certainly have to look outside the Bay area. With $200k you're starting from a strong position.