i have about $600,000 in equity, want income but am conservative

[Sandy Gelt]

I have one rental no debt worth $400,000. plus cash of $200,000 more. Want to pull money out and buy more rentals. I could do the BRRRR method but don't really want to. What I need is income but want to

be careful at the same time. I prefer to buy a little better property as I manage myself. I've had lots of experience with rentals and rehabs so I'm comfortable with that.  What do I need to watch out for as I purchase more rental properties? Are there rules of thumb I should know? Thanks in advance for any help.

[Kevin Grinstead]

Hi Sandy with 200k in cash and 400k in equity you have many options. One thing to look at is to pair your strategy with your risk tolerance. 

You an work with a syndicate to buy apartments where you won't have to worry about managing it. 

You can buy a property outright or with at least 50 down so you know even if it depriciates you will still have equity 

You can buy multiple properties in other markets that could give you a better ROI.

You could invest a large portion of what you have into a multiplex to make the most out of what you invest locally. 

You could buy a condo for cash and then just be cash flowing from day 1. 

The goal is to make our wealth work for us so we don't have to. 

Also look at how much time you are willing to spend to maintain these properties and how much is that time worth?  

Personally, I would take the 200k and buy a few properties in a market with an awesome cap rate and let the money come in.  

If you want to keep the cash you could do a cash out refi for the one you own and buy properties. 

You said want income but not doing a BRRR strategy, what is it that you don't like about the BRRR strategy and what would be a better income vehicle for you?

There are many ways to invest your money. Just need to find the monthly income your are looking for and find out how to secure that income.