Broad Question- SFR Packages vs. Apartments vs. MHP. 300k etc.,

[Cameron Mehta]

Hi All,

I have a fairly broad question looking for insight backed with reasoning from your personal experiences. I am in my early twenties and dropping out of college allowed me to work and save up about 300k. I don't want to devote all of my funds to real estate and have success in other assets. Plus, I would never spend 200k on a single bond, obviously, so it is daunting/ irresponsible to imagine doing that on a property at this time. I have spent the last 8 months learning about and trying to find a MHP but am yet to find one that fits my criteria. My state's market is not feasible (CA) to enter so all investments would be made across the country. 

I would like to scale back my current work for a few years and start some new projects (both in R/E and some of my passions). I would rather have great cash on cash returns that I can reinvest and the ability to optimize the property cash flow rather than the sole purpose of having the properties appreciate. In other words, I would rather have 30% cash flow than 30% appreciation. This is my preference as I live on cash flow and am at an age were I require so little money to enjoy life and can continue to invest what is saved. I'm sure many people will tell me how I HAVE to keep turning over intensively, etc. but that does not fit my needs or desired lifestyle. Looking for a place to park for a while.

My question is as follows: I expect to have great returns from a MHP but time is passing and I am wondering what suggestions you may have for someone in my position, able to take on a little more risk and work, looking for exceptional cash on cash returns within 1 year of investment, and long term time frames. Location, type of asset, neighborhood class, and expected cash flow would be some great starting metrics. 

Thanks and excited to see your creative ideas :)

C

[Andrew Johnson]

Cameron Mehta For what it's worth, I think you're going about this backwards. I'd be looking "market first" if I were in your shoes. To use the stock market as a parallel, if you don't believe in the future of retail do you really want to pick between JCPenney and Macy's? I'm the same way I'd look at those markets that you'd broadly find appealing. In those markets you can look at MHPs, single family homes, and/or apartments. Your $300K could lend up affording you 25% down on a quad or (of you run off to the rust belt) a down payment on a larger set of apartments. I won't tell you that Denver is better than Dallas is better than Nashville is better than Raleigh. They each have their own dynamics, suburbs, prevailing cap rates, etc. Decide on a shortlist of 2-3 markets and then look at the viability of investment options.