Historically REITs in US have outperformed the sp500 for last 50/40/30 years by 3-4% a year, but they have underperformed sp500 in the last 20 years due to Quantitative Easing induced liquidity stock inflation.

I'd strongly recommend against a single family home and only target properties with at least 2 units otherwise it'll be difficult to cashflow in this high interest rate environment unless you plan on using a large amount of liquidity in the purchase.

I have now saved $200k (liquid) that is ready to be deployed.

.🔹 How It Works:If your rental income falls short of covering your mortgage (PITI), you can use liquid assets to supplement your income.

Less liquidity.

Hi Paige, yes I have, if he has experience and liquidity that should be no problem.

The operating LLC doesn't own any asset, just liquid cash that is rental income from tenant and expenses against rental properties.

After you invested all your liquid capital, now what?

You'll have to ditch the seller financing and have skin in the game.Freddie also requires that borrowers meet minimum financial strength requirements (IE - liquid assets equal to 9 month's P&I [bare minimum], net worth greater than or equal to loan amount [bare minimum], FICO>=680). 

I'd recommend an investor be liquid 75k - 100k to make sure they can get this done and have a cushion, cause as we know you always need a cushion.