Where to keep cash savings to buy a rental?
We have cash and thinking of investing it in longterm ETF and keep it in Roth IRA until we can save enough to acquire a rental property. I feel bad not investing our savings but our goal for now is to acquire a rental property. Are there other options that I should consider?
Are you wanting to use that money towards the rental property when you're ready? If you are, then I'd look at something a lot more easily liquid than long-term investment funds.
@Christopher Carbonel how long are you thinking it will take until you can save enough to buy a rental? If it's less than 5 years then I agree with @Ali Boone and you should look for something more liquid. However, if your timeline is 5 years or more then I would invest it in a low-cost index fund and get your money to work for you!
Best of luck!
#5 Investor Mindset Contributor
- Investor
- Greenville, SC
Online savings account (2.2% range currently). Discover, Marcus, Am Ex, Ally, Citi, and Synchrony are popular ones among BP members.