$200K+ in Starting Capital. Several SFRs or go Multi-Family?

[Jeff Petsche]

We have a starting capital of $200K+ to put into REI and we are looking for long term BUY/HOLD properties and CASH FLOW. Our question is do we focus on acquiring several SFR properties or go straight for the multi-family properties?

I'm leaning more towards 5+ units with an ADD VALUE play than SFRs. What are your thoughts on using the BRRRR strategy? Or, are there any other strategies you would consider with this amount of starting capital?

We ARE NOT interested in REITS or The Stock Market!  

There are three of us involved in the partnership and we ARE NOT looking to use any of the CASH FLOW towards our daily/monthly lifestyle. We will be REINVESTING the cash flow into more properties, along with each of us committing to saving $1,000/month ($36,000/year + the yearly cash flow) to reinvest.

Two partners have corporate jobs with good six figure incomes, bonuses, 401(K), etc. and I am a real estate Broker who focuses on my transactional business (six figure income), plus I am a retired police officer with a tax free monthly income (Approx. $54,000 passive income per year-tax free), so we are covered on our living expenses.

Two partners are not looking at retiring for 10-12 years because they love what they do for work, make good money and have pensions in place. I am already SEMI-RETIRED because my police retirement covers all my monthly expenses, and work in the real estate space because I have a passion for the business and make good money doing it.

Because of my business and flexibility, I will be the ASSET MANAGER of properties we acquire and can travel to other markets if/when necessary, go build relationships with boots on the grounds in markets and put a lot of focus into our investment business and goals.

Your feedback and suggestions will be greatly appreciated.

P.S. Two of us live in Southern CA (me and my girlfriend) and our other partner lives in Seattle, WA. Buy/Hold just doesn't seem to pencil in our backyards at this time, so we are leaning towards OOS investing where cash flow and COC seems to be more prominent. (Looking at Indianapolis, Kansas City, MO, Oklahoma City, OK, Columbus, OH and Memphis, TN) 

[Lee Ripma]

@Jeff Petsche

If you like the BRRR strategy then you're going to really love forced appreciation in MF! I can't tell you what to do in your situation, however, I will tell you that whenever you talk to RE investors or hear them interviewed you don't often hear, I wish I had started off smaller and taken longer to get into MF. I did a small MF for my first deal and I'm just wrapping that up now. I'm looking for something bigger. Best of luck!