Currently have $800k cash and looking to get into real estate Need advice.

[Eric MacDonald]

Hello All!

I would like to provide a brief overview of my current professional and financial status. At 36 years of age, I am serving as a Vice President at my existing firm. My financial liabilities are confined to the mortgage on my primary residence. I have diversified my investments into the stock market and cryptocurrencies, both of which are performing exceedingly well. Additionally, I am the proprietor of a small business in the wedding industry, which is principally managed by my wife and generates approximately $50,000 annually.

While I have no intention of resigning from my current position, I am keen on expanding into the realm of real estate investment, an area I've long been interested in.

Together with my wife, we aspire to develop a portfolio that includes both long-term and, eventually, short-term rental properties. Our objectives for the next 2 - 3 years are as follows:

• To generate a monthly cash flow of $6,000 - $8,000, though we are open to exceeding this initial target.
• To invest in properties that will appreciate in value over time.
• To diversify our investment portfolio to mitigate risk and maximize returns.

In pursuit of these goals, I am seeking advice from this group on several points: 

1. Considering my available capital, would it be more strategic to purchase several properties outright, focusing on single-family homes in the $150,000 - $200,000 range that require minimal renovation? Alternatively, would it be wiser to leverage my funds by placing a 50% down payment and servicing the remaining mortgage over time?
2. While we are committed to learning as much as possible, we intend to employ a professional property management firm to oversee the long-term operations. I welcome any recommendations or considerations on this matter.
3. Finally, should we consider investing in a larger multi-unit complex, such as an 8 - 12 unit apartment building, instead of individual single-family homes?

I know there are pros and cons to single-family homes vs apartment complexes but would love to hear from this group

Your insights and experiences would be invaluable in helping us navigate these decisions and shape our strategy.

[Katie Peugh Davis]

Good Afternoon Eric,

It is wonderful to hear of your success of your previous investments and management of your current assets. The next step should be investing in real estate!  I work in Northwest Florida and recommend it as an area to check in to for rental investments.  We are experiencing incredible growth here and it is an area that always does well despite market shifts and economy because we are surrounded by 3 major military bases.  In addition, our beautiful beaches and tourism are flourishing.  Residential rentals, house flips and vacation homes are hot in the area.  If you want I would be happy to email you some comps. I am an investor and real estate broker myself.

Best regards!