What to do with $75,000 saved up for real estate investing

[Brad Stallings]

Hello,

current situation: I’m military and wife is a realtor. We Live in our primary home that we would like to stay in for at least 5 years. We own 1 condo that we purchased in the beginning of the year that cash flows $400 a month after all expenses etc. 

question? we currently have $75,000 saved up for our real estate investments but we don’t know how to approach the next buy/couple of buys. Saving up for the 75k took over a year and we don’t want to buy and then have to save and wait again. With this amount of money saved up…..what would your approach be? We want to grow as quickly as possible….but realistically. We would like to possibly buy one more condo and then begin our multi family journey. 

Thanks in advance!!!!

[Steven Foster Wilson]

Quote from @Brad Stallings:

Hello,

current situation: I’m military and wife is a realtor. We Live in our primary home that we would like to stay in for at least 5 years. We own 1 condo that we purchased in the beginning of the year that cash flows $400 a month after all expenses etc. 

question? we currently have $75,000 saved up for our real estate investments but we don’t know how to approach the next buy/couple of buys. Saving up for the 75k took over a year and we don’t want to buy and then have to save and wait again. With this amount of money saved up…..what would your approach be? We want to grow as quickly as possible….but realistically. We would like to possibly buy one more condo and then begin our multi family journey. 

Thanks in advance!!!!

Personally, I would be focusing on an area that cashflows and appreciates. My first BRRRRR was $300k, put $50k into it, refinanced, and got $90k back. I refinanced again and got another $50k and it still cash flows $1800/month. That alone helped us start our journey and it has been a snowball effect ever since. I would check out the market here in Columbus Ohio, https://learn.roofstock.com/blog/columbus-oh-real-estate-market this article shares the stats and trends for our market. Not to mention Ohio is a landlord-friendly state.

[Scott E.]

The simple, dream scenario advice is to follow the "BRRRR" strategy which would recapture your $75k in capital at the end of the project.

Unfortunately this strategy is much easier said than done, and there aren't as many opportunities that fit the BRRRR model in the current environment.

The real estate market is currently shifting though and we are seeing more opportunities surface.

My advice is to be patient, and deploy those assets when a great deal presents itself (even if it is a year down the road). And in the meantime, keep saving like crazy. It sounds like you guys are saving at a rate of ~$7,000 per month which is really impressive!

(Also, thank you for your service)

[Brad Stallings]

Quote from @Steven Foster Wilson:

Quote from @Brad Stallings:

Hello,

current situation: I’m military and wife is a realtor. We Live in our primary home that we would like to stay in for at least 5 years. We own 1 condo that we purchased in the beginning of the year that cash flows $400 a month after all expenses etc. 

question? we currently have $75,000 saved up for our real estate investments but we don’t know how to approach the next buy/couple of buys. Saving up for the 75k took over a year and we don’t want to buy and then have to save and wait again. With this amount of money saved up…..what would your approach be? We want to grow as quickly as possible….but realistically. We would like to possibly buy one more condo and then begin our multi family journey. 

Thanks in advance!!!!

Personally, I would be focusing on an area that cashflows and appreciates. My first BRRRRR was $300k, put $50k into it, refinanced, and got $90k back. I refinanced again and got another $50k and it still cash flows $1800/month. That alone helped us start our journey and it has been a snowball effect ever since. I would check out the market here in Columbus Ohio, https://learn.roofstock.com/blog/columbus-oh-real-estate-market this article shares the stats and trends for our market. Not to mention Ohio is a landlord-friendly state.

For your first BRRRR….did you use a hard money lender for the rest of the purchase since you only put 50k into it? That’s so awesome you were able to refinance twice and get your money back AND then some!!!!

also the Columbus area has been on our list.even though we live in Virginia….we have family in the ohio area so we visit often. Thank you for your reply !!!

[Nathan Gesner]

Quote from @Brad Stallings:

question? we currently have $75,000 saved up for our real estate investments but we don’t know how to approach the next buy/couple of buys. Saving up for the 75k took over a year and we don’t want to buy and then have to save and wait again. With this amount of money saved up…..what would your approach be? We want to grow as quickly as possible….but realistically. We would like to possibly buy one more condo and then begin our multi family journey. 

Start your multi-family journey right now. Whatever you buy will be temporary, so why not sacrifice a little? Buy a fourplex with 5% down. Occupy one unit, rent the other three. Wait 1-2 years, rinse and repeat. By the time you PCS, you'll have eight rentals (plus your condo) and be well on your way. The cash flow from those rentals should be enough to pay for a nice single-family home for you to live in at the next location, which will accelerate your savings for future investments.

[Eliott Elias]

put a 10% down payment on a flip using hard money and pay off the loan with your cash reserves. Do that 5 times 

[Hung T Nguyen]

@Brad Stallings Why don't you just BRRR it? If you do it right, add little value, you'll always get it replenished and can keep doing it with the same amount of money.

[Steven Foster Wilson]

Quote from @Brad Stallings:

Quote from @Steven Foster Wilson:

Quote from @Brad Stallings:

Hello,

current situation: I’m military and wife is a realtor. We Live in our primary home that we would like to stay in for at least 5 years. We own 1 condo that we purchased in the beginning of the year that cash flows $400 a month after all expenses etc. 

question? we currently have $75,000 saved up for our real estate investments but we don’t know how to approach the next buy/couple of buys. Saving up for the 75k took over a year and we don’t want to buy and then have to save and wait again. With this amount of money saved up…..what would your approach be? We want to grow as quickly as possible….but realistically. We would like to possibly buy one more condo and then begin our multi family journey. 

Thanks in advance!!!!

Personally, I would be focusing on an area that cashflows and appreciates. My first BRRRRR was $300k, put $50k into it, refinanced, and got $90k back. I refinanced again and got another $50k and it still cash flows $1800/month. That alone helped us start our journey and it has been a snowball effect ever since. I would check out the market here in Columbus Ohio, https://learn.roofstock.com/blog/columbus-oh-real-estate-market this article shares the stats and trends for our market. Not to mention Ohio is a landlord-friendly state.

For your first BRRRR….did you use a hard money lender for the rest of the purchase since you only put 50k into it? That’s so awesome you were able to refinance twice and get your money back AND then some!!!!

also the Columbus area has been on our list.even though we live in Virginia….we have family in the ohio area so we visit often. Thank you for your reply !!!

I used a FHA loan for my first property. That is great that you have family here and are somewhat familiar with the market. Over the past 5 years I have seen the industry & population growth in Columbus explode, and effectively it has raised our housing prices. Its for sure a hot market, but there are still deals to be had, Ive picked up an additional 12 units just this year. Consider getting started investing here, it has been a great experience for myself.