How can I invest 1 million in SFR's to net a passive 5k a month?

[Kerry Hennessy]

Ok, let's say there was an inherited piece of land in another country, valued at say 1.35 million. How can I invest one million dollars in buy & hold long term cash flowing property (domestically) with property management, and net 4-5k per month passively? 

More interested in sfr's and small multi's (because they make more sense to me and I am more familiar with them) than land, commercial, notes, large apartments etc.

I am thinking the best way to do this is to buy an existing portfolio from an investor that wants to retire.

Am I hoping too much from the amount of capital? I would need the investment to be reasonably passive as far as management. Possibly buy a portfolio already under management 

Am I dreaming or can this be done? Is the market too soft now (sellers market)?

Let's say this is hypothetical 

[Joe Villeneuve]

If you can get $1M in cash, ready and waiting to invest in REI, and your only financial goal is to have $5-6k in monthly returns from it, you are probably aiming low...VERY low.

If I were just starting out, and had $1M in cash right now, there would be any number of choices available to me to reach your $5-6k goal.  Here are a couple of them:

1 - Buy 14 SFH for around $70 each. Each Net CF would be around $500/month, so you would have around $7k in NCF every month. Ist that too high? Not the best choice since you are actually behind every month in COC Return. Simple math tells us if you put (spend) $1M up front, but only get $84k/year back (14 properties x $500 NCF/M x 12 months), it will take you 12 years to break even.

2 - Use the same $1M as 20% down payments on those same $70k properties.  This would get you 70 properties with your NCF cut in half (+/-, depends on your loan terms) and a NCF of around $17,500/month ($210,000/year).  This would also mean it would take you less than 5 years to break even, but try getting 70 mortgages (not possible even with a commercial loan).  This would mean you would need Credit Partners to get the loans.  Before you can say "...but that means I have to share...", I'll say it..."you have to share the NCF".  Even at 50%, you are ahead.

3 - You can bypass the idea of dealing with 70 properties, 70 tenants, 70 toilets, 70 roofs, 70 HVAC systems, etc..., and go right to NNN Commercial. Use the $1M as a 20% down payment on one or more NNN Commercial properties (total value would then be $5M) with an average CAP rate of 8%, and you would have NOI of around $400,000/year. Mortgages on the $4M in mortgages would be around $330,000 for a NCF of around $70k/year = $5,800/month +/-...and you would be on autopilot...and you should be able to get that average CAP Rate closer to 10%...an increase in your NCF of $100k per year.