Investing strategy for new investors for maximum cash flow

[Kyle Hilliard]

Hey everyone,

This is actually my first post on BP, so I'm very excited! My wife and I are new to rental property investing and we are still trying to work out the best investing strategy for our goals, so I'm hoping you guys can give me some advice. Our first child was just born a few months ago, so our primary REI goal is to maximize cash flow so I can transition away from my 9-5 job to spend more time with my wife and son (my wife works remotely from home). My initial goal is to have rentals that produce a combined $1500-$2000/month in cash flow after expenses.

Our current primary residence is in East Lansing, MI and we plan to rent it out next summer once we have done some rehab. Based on the rental income estimate from Rentometer, I think the house would produce around $400 in cash flow after all expenses (maintenance, vacancy, CapEx…).

We have $55,000 to invest in new properties in the Lansing, MI area. Starting out, I think we would manage the properties ourselves to reduce expenses. I think we would feel more comfortable purchasing a SFH, but are definitely open to small multi-family if it would generate more cash flow for us. I've been thinking about buying a small multifamily and house hacking it, but I'm not sure if my wife would be open to this. I think she would consider doing it for a year if the numbers were convincing enough.

My questions is: what is the most efficient way to use our $55,000 to maximize our monthly cash flow?

Thank you all very much, and please let me know if I’ve left out any information that you need to make a recommendation.