I recently refinanced my house and in the process of selling my old home. Proceeds from the two will put in good position to buy something bigger as an investment. My ultimate goal is to rely solely on my investments as I get older. What should I do if I had $50k to invest? I've been looking for several months and found some interesting investments in MHP and multifamily. I just recently got hired on full time as previously I was a contracted web developer. This way it will be easier for me to qualify for a new loan. I would love to have something turnkey where I work with a management company and fully open to invest out of state. Where should I start?
I see 3 duplexes in Lakewood, OH for sale right now for between 45-50k. Might go that route otherwise Cleveland appears to have a ton of cheap property.
You may want to check out these other threads:
So no matter how much you have, there is a thread for you!
As usual hehe
Don't put all of your cash into one deal. If you are trying to grow your money, invest in appreciation deals (buy low and sell high) and leverage your money. Instead of using all of your money to purchase a $50K house with an ARV of $71K, use $10K of your money and finance the balance ($40K). You may have financing costs of say $5K, but your ROI will be higher ($21K in profit without leverage is 42% ROI, but $16K in profit with leverage is 160% ROI). With $50K, you can do 5 deals that make $16K each for a total of $80K, versus only $21K using all your money. That's the power of leverage.
If you are not trying to grow your money and you simply want monthly cash flow, use less leverage to buy the property (you have put down the typical 20%).
God Bless You!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!