Seeking Advice on Real Estate Investment Strategy with $350K

[Minho Lee]

Hello BiggerPockets Community,

I'm reaching out for some guidance as I embark on my real estate investment journey with a budget of $350K. Here's a breakdown of my current plan and aspirations:

Current Situation:

- I have $350K earmarked for real estate investment.

- Currently renting an apartment in New York, but planning to relocate to Massachusetts with my wife.

- Eyeing areas like Worcester, Shrewsbury, Grafton, and Millbury for a single-family house, priced around $500K, with a planned $100K down payment. I understand this is not an easy task as the price in those areas are increasing, but we're trying our best to keep the maximum budget at $500K for the primary residence.

- We have started the pre-approval process with a lender and have a realtor we're working with to purchase the house

Investment Strategy:

- Aim to maximize cash flow while seeking appreciation.

- Ideal cash flow target is $2K+ per month.

- Planning to allocate the remaining $250K towards purchasing two properties in the Midwest market (e.g., Cleveland, Columbus, Indianapolis, Kansas City and open to exploring new areas where the entry point is affordable but the cash flow is stable).

- Seeking properties that can generate $2K+ a month in combined rent after factoring in property management, insurance, and property tax expenses.

Seeking Advice:

- Would purchasing two houses in the Midwest to achieve $2K+ cash flow per month be a sound strategy, or do you recommend alternative approaches?

- As a rookie investor, I acknowledge that I may be overlooking crucial factors. I welcome any advice or insights you can offer to refine my investment strategy.

Exploring Future Opportunities:

- Assuming I successfully acquire two properties, would I be eligible to obtain loans against these properties to further invest in real estate? I'm particularly interested in exploring the BRRRR strategy, despite the initially lower monthly cash flow.

Long-Term Goal:

- The ultimate objective is to achieve a monthly income of $15K+ through real estate investing within the next 10~15 years.

I greatly appreciate any guidance, tips, or perspectives you can share based on your experience. Thank you in advance for your valuable input!!