Investor delima - 3 options to invest $100k
I've been thinking about this as I continue my journey in real-estate investing, and I welcome input from the seasoned investors on here.
Basically, say you have $100k in cash available to you for investment and you're looking to establish an ongoing monthly renting income. Do you:
a) Use the $100k to buy a rundown/foreclosed condo around $80k, then renovate for rental around $10~20k, to end up with about $400~$500 net in pocket monthly (after taxes, HOA...etc). A year later refinance to get your money out (assuming 15% profit from appreciation) and repeat the process to upgrade to bigger property/better rental income. Assume the rental income is enough to cover the refinanced
b) Use the $100k as down payment on a loan to buy 2~3 rundown/foreclosed condos for around $300k ($60k down) then renovate all for rental with the leftover $30~40k, assuming you end up with about $600~$700 net in pocket monthly. This time, wait till renters move out then sell each to get your money out and repeat the process.
c) Use the $100k as down payment on a loan to buy a larger house for around $350k ($70k) then renovate for rental using leftover $30k, assuming you end up with about $800~$1000 net in pocket monthly. Again, wait till renters move out then sell to get your money out (+$50k profit from appreciation) and repeat the process.
I know it's long and has a lot of numbers, but I'm looking for advise regarding the pros/cons of each. As for background, I'm in the Dallas-Fort Worth Metroplex and all 3 scenarios are a possibility.