Strategy game: you have $250,000 cash, GO!

[James Ewing]

Hello all,

Happy and prosperous new year to all! 

Need your help on a strategy game I am playing with myself and our situation: suppose you have USD 250,000 cash you want to invest, what do you do:

1. Buy a property (maybe 2 if funds allow) 100% cash, then finance after rehab and repeat?  Perceived advantage is to reduce purchase price and close quicker.

2. Brrrr multiple SFH/MFH properties (according to a scaling/location strategy), using cash as down payment for finance? Perceived advantage is to maximise the number of doors.

3. Brrrr fewer properties, each with higher unit count, using cash as down payment for finance.  Perceived advantage is also to maximise doors, but reduce common-area maintenance costs, number of deals needed and be a more 'important' client to property managers and contractors.

4. Some other strategy?

A few considerations:

- I am Scottish, my wife is American and we currently live in Italy – investment is fully remote!

- Given above, we are thinking long term rental and not extensive rehab.

- We are educating ourselves, but have no REI experience.

- Target is cash flow of $30,000 and up, per year, after no longer than 2 years.

- Some appreciation can be forgone for cash flow, but appreciation still ideally above 4%

Also, you thoughts on the reasonableness of our target would be appreciated!.

Many thanks and look forward to some interesting answers!

James.