Turn 100K Into $3000/ Month Cashflow - Your Ideas Please!
Hellol One of my goals is to have $3000/ month cashflow by the end of this year. I want to use 100K to accomplish this.
What ways would you accomplish the above.
Thanks for all the ideas.
Alexander.
P.S. I live in San Francisco Bay Area and doing RE investing full-time.
First you buy a HP 12C calculator and read the little book on how to set up the age old problems.
Then you go to the MLS or to the Multiple List complete commercials and all.
You get in your car and you go to visit and keep on rolling until you find the one that you can buy that will give you the return you require. It may be a single unit or it may be mixed commercial and multiple which will respond to a few adjustments to increase the yield to your target amount. With $100,000 it is not a problem. In my case yes, cause I do not have a loose $100,000 at the present moment. I am amazed that some red hot broker to whom you have confesed your secret has not started selecting things for your view and amazement.
Not a problem start looking. A suggestion why not in the changing area of San Francisco buy a small commercial building in which they used to manufacture clothing. A classic loft building. But you do something slightly different you divide the loft areas down to a tiny little 650 to 800 each instead of the traditional. From the existing plumbing you run overhead the new plumbing outlets. You mark out the division walls and open the doors for rent. You should make a killing. everybody wants lofts in what used to be the choisest of slums. By cutting down the size you make them a little more affordable. Mostly multiple groups of renters as high as six as low as two.
Get rich and enjoy. You might make a deal with Ikea, use their Cad and build little packages of furnishing that your soon to be tenants can select and use their cards and relatives to help buy. It is a great business and can be done on the super cheap and most of the work on layoff. Many many new Chinese Construction Companies available to get cheap bids. Watch them they are fun to observe.
Cheers Lucius
If you are a full-time RE investor then you know the numbers well enough to understand the challenge you are posting.
Many things that might happen to hit the goal by the end of the year are likely not to plan out or will die out quickly. If you lengthen the time (24 months) they you would have more opportunity to parlay some early deals into a bigger sum then the 100K.
I suspect the highest leverage will come from funding the marketing of some other folks and then getting a piece of all their deals.
John
[addsig]
Alexander,
Let us examine your question. You want to invest $100,000 and get a $36,000 annual return. I.e. a 36% ROI. While such a thing is not impossible it is very difficult. And the odds of getting it as a $3,000 per month income are very slim indeed, since such a question implies that you are looking for a rental property (or some similiar vehicle) which would positive cash flow $3,000/mo. consistently Again, not impossible with $100,000 down but not easily done and certainly not on a 12 month time frame.
A more realistic goal would be to take your $100,000 and try to do a couple of flips, etc. to increase your capital before you look to replace a $3,000 per month steady income.
You could also look for a deal that would cashflow 3,000 after expenses in which you could use the 100k as a downpayment. Use as little as possible because cash is trump in this business. Maybe a multi-unit that needs a little fix-up and new management could be the ticket. The previous posts had good ideas also.