What would you do in today's market with these conditions?

Question

If you had say $150K cash starting out in South Florida in 2016, what would you do?... GO!

Nick Doria · Answer

@Emmett Dempsey As others have said it all depends on what your goals are? Personally for me i'm not crazy about fix and flip because of the tax burden and feels like i would be creating a full time job while the fix and flip will be going on.

I have been thinking about doing one anyways to give me a little more money to work with to start doing buy and hold which is what my focus is really on. But again as others have said and as well from what i have said it all starts with what you are looking to do and why you are looking to do it?

While I Am strong believer in taking action you also have to understand why you are going to pursue whatever you decide on what you want to do. Its also best to learn about all of the types of investing to help you decide which type of investing really stands out to you then start taking the action towards that type of investing strategy.

Account Closed · Answer

@Emmett Dempsey I would only fix and flip. Finding a decent cap rate in south florida is not easy unless it's in a challenged area.

Account Closed · Answer

It depends on your Goals, Each investor is different. Some are Wholesalers, Fix and Flip, Commercial and Vacant land. Some would hold the money and wait for the Real Estate crash which will happen sooner or later and have cash to buy up a lot of property at discount prices. Why buy property when the market is crazy? The old adage is true you make money when you BUY not when you sell!

Billy Smith · Answer

John is right on .

John Thedford · Answer

If you can buy right with free equity and a cushion against market changes I suggest buy and hold. Flipping has a higher tax rate than buy and hold. Buy and hold offers tax incentives such as depreciation and capitol gains taxes not available to flippers.

Emmett Dempsey · Answer

My goal is to build my investment capital up to a point where I can do bigger deals and earn more capital. I eventually want to get into buy and hold, however I want to be able to grow my capital as fast as a I can. You can find deals, but they are just much skinnier these days. Just have to keep turning over rocks.

Ryland Taniguchi · Answer

I would divide my money into three categories equally.

1) Flips and Urban Townhome/Rowhome/Skinny Mini Development in hot areas and lowest priced areas, but on the development structure so you pay zero for the land and don't finance your soft costs.

2) 1.5% to 2% Cash flow rental properties using BRRRR in B class areas. If you live on the coasts, you might consider diversifying into the Midwest in areas don't crash as hard as the coasts.

3) Liquid assets such as cash, cash equivalents, cash value in a whole life policy (if you can find the right one in a non-direct recognition mutual insurance company), gold buried in a ditch, and tax lien certificates.

Cashmere Robinson · Answer

I too think fix and flip is the best option here!

Julie Marquez · Answer

@Jay Hinrichs Is that advice just for Florida or the entire US? How about WA?

Jay Hinrichs · Answer

fix and flip nothing else

What would you do in today's market with these conditions?

What would you do in today's market with these conditions?

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