What's best investment for $1m

6 Replies

Open this discussion as I'd like to get some fresh ideas on how to invest $1m. Is it to BRRR single family? Buy apart complex and value add? What would you do? Provide what you think the ROI would be in your proposed scenario? I'm looking to accelerate the velocity of money and increase returns. Thanks.

Originally posted by @AJ Nemeth :

Open this discussion as I'd like to get some fresh ideas on how to invest $1m. Is it to BRRR single family? Buy apart complex and value add? What would you do? Provide what you think the ROI would be in your proposed scenario? I'm looking to accelerate the velocity of money and increase returns. Thanks.

Hello AJ, 

The strategy that would best suit you is the strategy that aligns most with your long-term goals.

What is your 10-20-30 year goal? Reverse engineer to find out what your need to do for your first deal.

Being that you're in NYC, cash flow won't be too good here but appreciation keeps shooting up. On the flip side, many regions outside of NYC have potential for cashflow but little appreciation year over year.

It all starts with what you want your portfolio to look like when its all said and done.

Best of luck to you on your journey!

Abel

Thank you for the comments.  My goal is to double the money in 5 years.  I have invested out of state in SFRs already and start to think that would be hard to scale.  I'm willing to be more active in the next 5 years and believe I need to do more value add in this environment.  Can $1m get me into the multifamily without asking others for money in a strong job market?  Thinking Texas markets and Atlanta?  Or Fl?  Or should I stick with single family and keeping adding properties one by one but hoping to add some value slowly in the process.   My goal is not necessarily cash flow but to grow portfolio with a balanced approach to achieve the best aggregate return (cash and equity appreciation).   Any thoughts are appreciated! 

Hey @AJ do you own any multifamily properties at the moment? With that capital you could definitely find decent cash flowing multifamily property in Atlanta. Specifically I would suggest the west side of Atlanta at the moment. 

@AJ Nemeth

Welcome to BP! 

1) I wouldn't post on BP (aka social media) how much money you have

2) You should evaluate multiple RE investing niches to pick the one that resonates with you the most. For MFH investing is the strategy that allows to scale and avoid having 6 closings for 6 SFH, etc... Read up and educate yourself prior to taking any action and join the local REI clubs to network with like-minded investors. If you're in the City, join our event - we have RE CPA coming over in September. Meetup details are under my profile.

Best!

I'm in the process of shifting my investment purposes to a long term goal. I started with the question "how do i want retirement to look?" MY answer is pretty simple. I live in Louisiana where it's hot, and muggy, and flat. Rentals cash flow well here, I have 4 (soon to be 3), but they don't APPRECIATE. So my new plan. Find areas that cash flow and that are GROWING. I'm selling off my smaller, cheaper properties for more expensive short term rentals in better markets. The end goal is to have a few houses in the mountains and in different geographies that I can float around in retirement. All paid for and providing a retirement one day. With higher value properties it takes less time to manage for a greater ROI per property (same concept as multi-families). @Abel Curiel already nailed it... Start with the end in mind and do that. 

Originally posted by @AJ Nemeth :

Thank you for the comments.  My goal is to double the money in 5 years.  I have invested out of state in SFRs already and start to think that would be hard to scale.  I'm willing to be more active in the next 5 years and believe I need to do more value add in this environment.  Can $1m get me into the multifamily without asking others for money in a strong job market?  Thinking Texas markets and Atlanta?  Or Fl?  Or should I stick with single family and keeping adding properties one by one but hoping to add some value slowly in the process.   My goal is not necessarily cash flow but to grow portfolio with a balanced approach to achieve the best aggregate return (cash and equity appreciation).   Any thoughts are appreciated! 

Hi Aj,

I know you mentioned you wanted to double your money in 5 years. Another way to think about this is in terms of what kind of annual return you're going to need. Using the Rule of 72 we can calculate that you're going to need an annual return of 14.4% on your capital in order to double your money in 5 years. It would be tough to find a market that offers 14%+ in appreciation so my focus would be looking at a multi-family property in which you can add value. Buying something that is very distressed and then renovating the units and raising the rents, driving the cap rate down and raising the value of your property. Best of luck!