I just had the largest liquidity event of my life and now I have more money than I know what to do with (thank you bitcoin). I’ve been dying to get into rental properties since I was college aged. At first I didn’t have the money, then once I did I thought bitcoin was too hot to sleep on and put the money that would have gone into real estate into bitcoin. All the while wishing I had just poured the money into real estate and built something stable.
Well I cashed out and I have 400k after taxes. I’m interested in buying multi family properties in a C+ neighborhood 2 hours away from me. Cap rates of roughly 10%, I plan on hiring a property manager. I’ve run the numbers back and forth 20 times and they work. I’m expecting a 12% cash on cash return, plus appreciation and loan pay down. My problem is, I want to move to real estate full time as quickly as possible. I hate my job and am ready for my next chapter. I understand I have the financial opportunity of a life time right now and the last thing I wanna do is blow it because I was impatient.
In my price range, this 400k is gonna boil down to 6 houses. That’s gonna take a lot of time to acquire, and I want to be generating significant passive income within 2 years. I’m begrudgingly putting it into index funds, but honestly I want it all in real estate as soon as possible. I see better returns in a less volatile asset. Can someone with more experience than me offer advice?
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