three mortgages left and 450k to spend

[Amalia G.]

Hi All, 

My partner and I have been going back and forth and how to invest some funds.

We could potentially free up  ~450k to spend on real estate and at that time could have three traditional mortgages left.

We need on average 9.5% return to hit our goal with this money including property management and some realistic (to fairly pessimistic) numbers for maintenance, insurance, vacancy etc.

The problem we are running into is the places we typically buy are pretty cheap SFH. The cash flow is great but we will soon be out of mortgages and left with cash purchases or private lending, which do not appear to produce the same cash on cash.

I've looked for larger units: triplexes,fourplexes and at some smaller complexes but I can never seem to find any that provide the same return without being in some tough neighborhoods. Ideally we would like something not on the East Coast, as we are west coasters and do like to travel to check on our places from time to time. We typically get into B or C neighborhoods but not D or super depressed.

I'd love to hear what others would do in this situation.