Newbie looking for advice, suggestion, comments on investing

[Catalin B.]

Recently got into BP forums and it seems like there are a lot of knowledgeable people willing to help.

I am planning to get into Real Estate Investments, targeting passive income. As of 2018, I do have approx. $1.1 mil + equity in my property (no liens, and very good credit score)

Since I am running a business on my first level of my home, I couldn't find any financial institution to secure me a HELOC (apart from point.com which doesn't seem a good deal for me)…apparently, the lenders don't like mixed commercial/residential type of business (e.g. assisted living). I don't want to sell unless I will be able to get going and generate some revenue from a REI. Not sure if I can secure private and/or hard money. So financing it is an issue.

I have experience with several remodels, additions and gut rehabs for my properties where I was the GC (planning, permits & inspections, subcontracting)

I can probably start small and purchase cheaper properties with cash (around $100k+) and rehab/remodel/rent/flip and build up a portfolio. However, I was wondering if I can jump to my goal faster.

Goal:

Buy a lot and build two vertical five plex row townhomes, approx. 1,200/1,400sf each (garage at the bottom) in a B neighborhood, and hold. Looking for 10% or higher CAP rate from rentals…better returns than index funds

Or

Buy and rehab/remodel an existing apartment complex in a B neighborhood and hold…I rather do the former (low maintenance)

Location:

I was thinking Orlando, Tampa, Jacksonville areas…good demographics, steady real estate appreciation, low unemployment, relatively low real estate prices… I currently live in Seattle area and the prices are extremely high for this kind of project.

I am willing to temporary relocate or commute in order to manage the project (wife will take care of the existing business).

I am looking for advice, suggestions, comments