I have access to $500k cash, should I put $50k down on 10 SFRs?

[Evan Evans]

I have access to $500k. In my area there are high demand SFRs around $550k which rent for $2900-$3200/mo.

Should I put $50k down on 10 of them, pulling $500k IO mortgages on each and go for cash flow and holdand reinvest profits into next properties? Or should I try and do a BRRRR with 1 SFR using all the cash to buy a $450k rehab with $25k and REFI at comp = $550k?

I've bought and sold 6 homes before the 2010 housing crisis. I flipped $50k to $450k during the 10 years leading up to the crash and lost it all...because I was living in the homes and flipping serially instead of investing all that money into cash flow producing properties all working in parallel. My mistake, but I definitely learned some lessons!

So, my point is, I've never done cash flow property rentals before. I have a financial backer so I can tap $500k. I feel like getting 10 homes, a property management company, IO mortgages, renting out, and netting around $500-$1000/mo each property is the strategy I'm comprehending. But I've just started learning BRRR and I'm very curious if that's a better route than getting into 10 properties, as far as best using this $500k?

Feedback?

[Wayne Brooks]

Well, you’re not going to get 90% mtgs on investment properties, more like 75%.  Assuming you’re paying interest on the $500k you will not be cash flowing at those prices and rents.....not likely to cash flow even if there is no interest on the down payments.