$1 million in capital to get to $20k+ a month in income

[Paul Ryan]

Hello,

I have been reading the forum for some time and doing research.  I’m  Just getting started in real estate.  I’ve done a lot of research looking at deals (including buying vacation rental properties, syndications, etc) but have not pulled the trigger yet.  I am exploring how I can generate cash flow of at least $20k per month using $1mm of capital.  My goal would be to see this monthly cash flow grow with time to twice that amount or more.  Based on the $20k/month on $1mm of capital, this would require cash on cash returns of 24%.  My sense is that this is an aggressive return expectation in today’s market.  I am fairly open to the type of investment (multi family, mobile home parks, vacation rentals, self storage, investing in debt , syndications, hard money lending, etc) but seek stability of cash flows and capital preservation/lower risk (I’m more of a buy and hold type investor).  I would be willing to take a very active role to achieve these levels of returns.  Also, I would be willing to move if needed (I live in a high cost city where cap rates are low). 

I understand this is a very general question - but I’d love for some ideas for a plan to get the juices flowing.  What’s the quickest way to get to the desired level of cash flow, with the least risk?  And using a model that continue to scale over time?

Thanks.