I have cash, how do I start?
I've been back and forth for about a month now on what to do...
I'm 31 and rent in Venice, CA; one of the most expensive areas in LA. I'd like to buy and hold and build a portfolio of passive income. How do I do that?
I have $125k in mutual funds, $70k in retirement and another $30k in cash and excellent credit. I've been approved for a $750k mortgage. My plan would be to use the $125k I have sitting in mutual funds to use for a down payment on something.
Invest local: Condo's in LA go for $500k in my neighborhood... not super nice condos either. This makes finding cash flowing properties in LA few and far between. With the traffic in this town, everything that I could afford would be an 1hr+ commute each way, which I don't want to do.
Invest long distance: I am familiar with my small town's real estate market. The real estate is inexpensive and it's a college town so it's usually always rented. I have purchased property there before while I was in college and have a good relationship with a property management company there, that would be able to help me manage the property long distance.
If you had $100k in cash to invest and lived in a expensive real estate market, what would you do?