Realistic Rental Aspirations?

[Travis Hagan]

I have about 700k to invest in real estate, and I’d love to start with turnkey rental properties (preferably multi-family). I am new to the world of RE, but I know the stock market very well. I live within 2 hours of Memphis, and I’ve heard nothing but good things about the markets in that area. I’d love to be able to see 40-50k through strictly rental income. I’m not interested in the flipping process yet; only interested in the rental aspect of things. Any advice or pointers in the right direction are greatly appreciated. As a side note, I am not one to throw money down the toilet. I want to get a good grasp of where to start before considering something big. 

Do you think 700k would be enough to achieve this goal? What is a realistic goal? More, or less? 

Much thanks in advance. 

[Trevor Fleck]

@Travis Hagan Is that $40-$50k/year I'm assuming? Do you have a W2 job or own your own business for at least two years? I ask because if the answer is "yes" the ability to use financing (leverage) could make your $700k go a long, long ways. For example, you can leverage up to 10 homes using Fannie/Freddie financing which is still one of the best loan products on the market. Another 10 if you have a significant other and make sure to keep 10 in each of your individual names. There are some good turnkey companies in the Memphis area. Some of the bigger ones are Memphis Invest/REI Nation, Mid South Home Buyers and Rent to Retirement. I personally use Rent to Retirement and have been very pleased.

You might also consider dipping your toe in 2-3 markets with a couple different turnkey providers. You'll learn a lot from each of them, tap into their network of contacts that you can use later either to invest further with them or to go out on your own, and you'll be diversified both across regions and products. This way you do a proof of concept/pilot before doubling down on any particular market with any particular turnkey company. I've personally had good success in Huntsville, Little Rock, and Cape Coral. Happy to chat more about my experiences if it would be helpful.