Best practices starting with 400K

[Eric Charles]

Just getting started, and looking to get on a path to freedom.  I have 400K in capital to leverage into an income stream. Properties would initially self managed, but eventually turned over to a management company to allow freedom of movement.  I have a solid handle on the fundamentals, but no clue as to the most intelligent and efficient way to deploy this capital to get maximum income.  Currently in Lincoln, NE but willing to move to any market to set this up.  Any opinions and advice are most welcome! Thanks

[Craig Curelop]

@Eric Charles - There are a bunch of different ways to deploy $400k. 

If you want the highest Cash on Cash return, I would purchase a multifamily property with a 3.5% down FHA loan. You a extra with PMI, but your cash on cash could be upwards of 50%-100% after year 1.

Given that you have $400k to work with, you'd probably be able to purchase a few more properties with a conventional loan which is relatively easy. 

Or you can get into notes or be part of a syndication if you want something a little more spicy. 

Personally, I am a fan of investing in markets you know. So staying in Lincoln or other areas of the country that you lived or know people at will be easier.