Best use of 100k for income stream

[Bruce Reeves]

Lot of variables in this question but I'll try to keep it simple. My ability to retire depends of course on an income stream. Current plan is to sell my home and use the equity to pay off my rental property. The duplex rental currently rents for $900/side, so $21,600/yr gross total. I will have other living arrangements, so I do not need to replace my current home with another.

Feel like there may be better choices to use the approx. 100k to create an income stream similar to the duplex. Thinking is, can I use the money to create a similar income and keep the duplex so my tenants will be paying it down for me. Hate to stop other people from creating more wealth for me which is what I feel like I'm doing by paying it off. 

Look at four-plexes? Bread and butter 3/2/2 in my area are around 130k with monthly rent about $1,100, so hard to replace the duplex income with 100k down.

Thanks for any help with my plan which hopefully goes into affect in three years!

[Ali Boone]

Well, the trick will just be to find something where the numbers work and go from there. Maybe fourplexes in the area just flat won't cash flow, but maybe SFRs will. I'd imagine in Arkansas there are cash flow options. Particular property types and in particular areas. Find the right combo of those two things- the magic of where the cash flow is- and you're in.

In terms of maximizing the returns on the money that you can invest, it's all about leveraging. There are certainly people out there who aren't comfortable with leveraging, and that's fine, but it really is the best way to maximize what you have. 

I actually use the example of a $100k property in this article, comparing the returns of paying cash for one $100k property versus leveraging ~4 of them.

https://www.biggerpockets.com/renewsblog/2015/04/1...

So if you are comfortable with leveraging, and then you find the magic cash flow spot near you, boom!