40k... How to make the most of it?

[Raul Ruvalcaba]

Hello,

I been more and more active around here asking and learning from experience real estate investors. I posted before my goal was to buy 5 houses this year.... I'm about to close 1 deal next week. That will leave me with 4 houses... I'm pretty much set for my fourth finance deal... I know after the 4th, things get harder. I'll deal with the 5th finance once the type comes...

Here is my dilemma:

I have 40k to invest with. I'm looking at properties between 70-85k. I know I could make around $400 bucks after mortgage per month on a single family property. (I would have to make a 20% down) My debt and mortgage payment would be less as well... I could also buy another property, assuming I can find a bank which would finance the 5th deal.

I have also been looking at a triplex that cost $150k. The triplex is currently rented and produces $1,600 per month. I assume the mortgage would be around $800.00 plus $200 in water and trash service. ( I would have to make a 25% down). However, I would have to save a little more to make the down payment, meet the reserves requirement for all 4 properties and also for closing fees.... I would be left without a "cent" in my account--- Only reserves. The triplex has been on the MLS since last year....

I know it's not a lot, but what would you guys do if it were your money? What is the best alternative? I would really like to get the triplex and 2 houses, lol.

I estimate both rental properties ( the one I have and the deal I'm about to close will leave me with $1,000 after both mortgage payments plus $800 from the deposit)

I'm still learning.. And really, I'm into renting not flipping.

Thanks again...