Leveraging that amount of cash to buy SFHs or small multis in favorable cash flow areas could allow the buyer to accumulate maybe $15M worth of props, and cash on cash returns north of 10%. 3) The better returns in LA with that kind of money are the ultra high end flips.

In reality this would be my first investment purchase so my actual numbers will be ultra-conservative.  

I have had some nice ultra "experienced" investor friends/family that forgot how failure got them to the next huge place in their life.  

If you are trying to achieve and ultra low cap rate that tends to be a 1031 buyer.Buyers with cash sitting around tend to want more yield to deploy otherwise they are happy making small deals and keep churning the money until the right property comes along.

That's damn cheap and ultra frugal!

In today's ultra crowded and competitive market, those that dig a little deeper are the ones having the most success. 

@George Fitz Yes 90k/mo is the accurate and "conservative number" From his demeanor I know this guy knows his stuff, and all his calculations were ultra-conservative for this situation.

Josh, I'm a bit late to this party but would offer my 2 cents. 1) Real Estate agency is ultra competitive.

But, at a high level, new (bigger, 100+) apartment buildings are put up by big developers, backed by their own money, banks, ultra high net worth individuals, etc.

Flippers have to buy ultra low to make a resale work whereas a landlord holding to rent or a home buyer looking at  a property that needs work but can still get financing will pay more.