Figuring out my next move

[Kevin Goldman]

I just recently sold an investment property that i originally lived in.  I bought it for $440k iin 2009 and leased it on and off from 2017 till present for between $4000 and $5200, I sold it fior $1,100,000.  

I need to replace that monthly income of $5200 a month, and I have ambitions to invest out of California and am looking at markets like vegas either short term rentals, codo hotel (very iffy on this), and Toledo, Ohio.  I'm trying to find a 1% monthly return...  currently have just over $1m to use and am looking at diversifying between a personal real estate rental property to get that 1% monthly rtp, a commercial developer fund that yields 8% a year and 4% after they sell (roughly 4 years after investing), and a managed fund that is liquid and yields 5.5%.  

I am a licensed realtor here in Los Angeles, don't want to deal with the exodus of insurance companies and difficulty getting insurance and keeping it after a claim, tenant landlord laws being heavily in favor of tennants, exorbitant property taxes and minimal RTP among a few other factors with these being the most inspiration to take my money out of california.  

[Devin De Lange]

Hi Kevin, 

First of all, what a win! This is an awesome spot to be in. 

There are a few markets out there that still meet the 1% rule. I've found that typically in those markets, you are buying a property that is likely to appreciate less over time compared to other markets, but are consistent in bringing in cash flow, which sounds like is what you are looking for. Ohio is one of the big ones that comes to mind. If you go that route, with the purchase prices in Ohio, you could probably buy a few multi-family homes and rent them out to provide a solid cash flow. You could also do a split, as you mentioned. If you wanted to stay on the residential side, you could do 60-70% LTRs in a location like Toledo, and then look for STRs in Vegas to bump that monthly cash flow number (especially during peak season). 

Given that you are going from one property to a few and likely out of state, good property management is going to be key. That will also need to be taken into consideration of your monthly bottom line, if you decide not to self-manage. 

Whichever route you take, with the capital you mentioned, you have the opportunity to diversify and build a great portfolio.

Hope this helps!