If you had $300k how would you use it to generate maximum cashflow

[David Yee]

Hello! I am considering selling ~$300k in stock that I've accumulated over the past 10 years. How would you suggest I use this money to generate the maximum amount of monthly cashflow? I was considering purchasing a single rental property with all cash to maximize cash flow. 

Thank you in advance!

[Melanie P.]

Does your market offer Duplex/Triplex/Fourplex housing? Depending on the price point if you could get two of those with reasonable 50% leverage you'll be on your way. I looked through our records trying to figure out the point when the real estate investing gets interesting. Lots of variables. This could get you 6-8 units if you shop patiently which is a great starting point.

Please do not send any money off to companies that advertise real estate "syndications" online. This is not true real estate investing - you're investing in an investment promoter who may eventually invest some of what you send him into real estate but you'll have zero control over the investment once you send off the funds. Many threads on here about being unable to cash out, losing principal, not getting any updates about their funds, etc.

[Edward Condon]

I'd be happy to show you a perfectly plausible path to 15%-ish annual IRR on $300k. Approximately $3,750 per month, principal and interest. Or, I can show you a path to $3,000 per month, interest only. Principal to be returned in full at the end of the three-year term.  Feel free to dm me.
Best of luck!
PS Only T-Bills and FDIC Insured bank accounts are riskless.

[Joseph Bui]

While you could put it all in 1 property, you are literally putting all your eggs in 1 basket. I would consider buying multiple properties. I would probably use those funds to do BRRRRs. Its the best way to stretch your capital and scale your portfolio. The key is having a trusted team on the ground that can help you through the process. I'm based in Seattle but have built a 9 door portfolio through turnkey and BRRRRs in the Midwest (Memphis and Detroit) and they all cashflow around 16% Cash on Cash. Happy to connect and walk you through my investments and show you the type of cash flow I'm getting.

[Michael Smythe]

@David Yee you maximize your cashflow in real estate by wisely leveraging your cash.

Also, real estate investing is rarely all about the cashflow. Appreciation over time often exceeds the cumulative cashflow.

You can PM us if you'd like to have deeper discussion on this topic:)

[Kevin S.]

Quote from @Melanie P.:

Does your market offer Duplex/Triplex/Fourplex housing? Depending on the price point if you could get two of those with reasonable 50% leverage you'll be on your way. I looked through our records trying to figure out the point when the real estate investing gets interesting. Lots of variables. This could get you 6-8 units if you shop patiently which is a great starting point.

Please do not send any money off to companies that advertise real estate "syndications" online. This is not true real estate investing - you're investing in an investment promoter who may eventually invest some of what you send him into real estate but you'll have zero control over the investment once you send off the funds. Many threads on here about being unable to cash out, losing principal, not getting any updates about their funds, etc.

 You are a valuable contributor to BP, especially the newbies :)

[Cory S.]

All Cash Flow Vehicles

High Dividend Stocks

Stock Options

Mortgage Notes

Real Estate Debt Investing

Long Term Rental

Mid Term Rental

High Yield Savings Account

I had the same amount after I sold off most of my rental properties and paid everything off, now I do all the above. 

Like everything else they all come with their own risk.

[David Yee]

Thank you everyone for your insights! It seems that most people feel that purchasing a single property with all cash is not as good an idea as investing in multiple properties with leverage. Does the fact that I have a full time job and am not able to be a full time investor change anyone's perspective on this?

[Joseph Bui]

Quote from @David Yee:

Thank you everyone for your insights! It seems that most people feel that purchasing a single property with all cash is not as good an idea as investing in multiple properties with leverage. Does the fact that I have a full time job and am not able to be a full time investor change anyone's perspective on this?

While real estate investing isn’t 100% passive, it can be pretty close with a good team in place. I’ve done multiple years of investing while having a full time non real estate related job. 

[Travis Pehle]

Quote from @David Yee:

Thank you everyone for your insights! It seems that most people feel that purchasing a single property with all cash is not as good an idea as investing in multiple properties with leverage. Does the fact that I have a full time job and am not able to be a full time investor change anyone's perspective on this?

 If you want maximum cashflow and the least headache consider buying a new build without debt.  You can buy a  brand new house in a great area and have a great asset.  If you buy a package of 6 lesser houses  that means I have 6 roofs, 6 hvac, less cashflow, and likely subpar appreciation(dollar for dollar) compared to better areas.

The reduced maintenance costs, higher rents, better tenants, appreciation, and reduced hassle factor for new construction are real and attractive.  

And if you buy all cash and you don't like it then simply put a mortgage on it and use the cash to buy another. 

[David Yee]

Thank you for your perspective Travis Pehle!

[Michael Maxie]

Quote from @Travis Pehle:

Quote from @David Yee:

Thank you everyone for your insights! It seems that most people feel that purchasing a single property with all cash is not as good an idea as investing in multiple properties with leverage. Does the fact that I have a full time job and am not able to be a full time investor change anyone's perspective on this?

 If you want maximum cashflow and the least headache consider buying a new build without debt.  You can buy a  brand new house in a great area and have a great asset.  If you buy a package of 6 lesser houses  that means I have 6 roofs, 6 hvac, less cashflow, and likely subpar appreciation(dollar for dollar) compared to better areas.

The reduced maintenance costs, higher rents, better tenants, appreciation, and reduced hassle factor for new construction are real and attractive.  

And if you buy all cash and you don't like it then simply put a mortgage on it and use the cash to buy another. 

 I agree Travis. I'm new to the group and I made a post on another category page. I'm a realtor in Coastal Alabama and we have a high-production builder down here (DR HORTON). If you're looking for long-term, We have investors from literally all over the country buying these new builds.

Horton has been offering all sorts of $$ towards rate buy downs, upgrades, closing costs for months and its definitely hurt re-sells. The new builds rent really well and $$ appreciate really well and fast

[Gino Barbaro]

@David Yee

What niche do you want to focus on? That's the first step, then selecting a market, then asset type, asset class.

There is no short answer. If you would like to continue the conversation, DM me and i can share with you my experience.

Gino