Just looking for basic advice from a new REI. I am mostly interested in SFH and flipping, but also have interest in MFH and multiple unit properties. I will be closing on my first endeavor, a SFH buy and hold that I purchased for $75,500 putting $25K down. I will look to rent it for around $850/month.
I have around 70K free cash. Part of me wants to buy another SFH all cash and just build wealth for my next down payment through rent, but another part of me wants to keep cash on hand for any possible REO properties that I could flip. Any advice from anyone who has been in my shoes? All perspectives appreciated. Thanks in advance.
I was always told to have a real estate investment philosophy: Cash flow, equity/wealth, flips, etc.. I'm a buy and hold investor that looks for cash-flow and equity so I guess it's just want your need and wants are. If you have never done a flip maybe now would be a good time to do that.
Of course it always depends on what your long-term goals are... and if this is a full-time gig or part-time.
The only answer any of us can give is what would WE do.
Personally, I would set aside a big chunk of that cash and spend it on marketing (think 20k+).... I would market for leads like crazy (the difference between a deal you get from marketing and a deal you get REO will often exceed the 20k you just spent on marketing), then take each lead individually and get what I can and be open to ALL exit strategies.
That way I could take my rentals Sub2, flip the ones that have the biggest margins, and wholesale the rest.
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