If you had access to $400k, how would you build semi passive $100k annual cashflow?

[Max S.]

$100K cash and up to $300K HELOC variable interest only payments (prime +.25). Looking to learn some great lower risk strategies for those that want to share! I own and manage 3 short term rentals, and have done for 3 years ($50K gross profit each year across them). Not interested in flipping. I could buy a large STR in my market DSCR but looking to diversify! Happy to trade my STR knowledge for those that want to Private Msg! Target timeframe of 3-5 years. Annual Appreciation 3%+ target. Self managing an option but a PM option is cool too! Happy to discuss partnerships as well.

[Tony Savage]

Hey Max,

When I first read your post I was thinking you should pick up some traditional rental properties but that 300K HELOC concerns me.

I just closed on my mothers 250k HELOC at 8.5%. Since we just closed, I'm not sure what the payment will be. The HELOC is with UWM, they wired 186K directly into my moms account so we will be paying interest just on this amount for now. I have a mortgage with UWM as well on one of my rentals.

I would want to get that 300K paid back as soon as I could. The way to do that in your case would be flips or STR. If you're not in a rush to pay it back then you have more options provided you have enough cash flow coming in to cover the payment plus keep some for yourself. Is that 300K using up a lot of equity in the property your planning use for the loan?

Good Luck!