I have 45,000 What to do with that amount? Buy cash or what?

10 Replies

Here I go, now I have $45,000 available to buy a single house in the Pennsylvania area where I live. The problem is just only 45 just I can buy a single house. And for 55k to 60K I can buy a duplex in my area, each one I can rent it for $800 to $900 each door, for $1,600 to $1,800 monthly and they pay for all utilities. Some advice of exactly what to do for made a better investment decision.They are to many people coming to the area, because many warehouses paying good rate, and now is the right time to invest for rent or flip on the future. Thank for all the support.   

Buy a duplex with a traditional commercial loan for 20% down. That will leave you with $33k cash left.

In a few months if your numbers are working out with the first duplex go ahead and buy another with 20% down. Repeat until you end up with 3-4 duplexes that are going to cash flow like crazy.

Originally posted by @Jon Reed :

Buy a duplex with a traditional commercial loan for 20% down. That will leave you with $33k cash left.

In a few months if your numbers are working out with the first duplex go ahead and buy another with 20% down. Repeat until you end up with 3-4 duplexes that are going to cash flow like crazy.

Are there a lot of lenders that will do a loan for that amount? 

 

Yep! Just start going to your local banks and talking with them. It may end up going to multiple banks before one fits with your investment strategy. Just don't give up when the first lender tells you 'no'.

@Ramon Paredes - keep in mind that cheap properties come with their share of headaches.  Your cashflow will likely be less than you think due to evictions, turnover and more repairs (tenants in that range are harder on your properties).  I'm not saying to avoid cheaper properties (I have a wide range of price points in my portfolio) just make sure you're not wearing rose colored glasses when you run your numbers.  You might (might) be better off getting a property that's a little more expensive.  It all depends on what your plans are beyond this 1st purchase.

Originally posted by @Ramon Paredes :

Here I go, now I have $45,000 available to buy a single house in the Pennsylvania area where I live. The problem is just only 45 just I can buy a single house. And for 55k to 60K I can buy a duplex in my area, each one I can rent it for $800 to $900 each door, for $1,600 to $1,800 monthly and they pay for all utilities. Some advice of exactly what to do for made a better investment decision.They are to many people coming to the area, because many warehouses paying good rate, and now is the right time to invest for rent or flip on the future. Thank for all the support.   

 Ramon, Could you invest in large multi-family syndication? If I were you, I would invest in large multi-family syndication. You will receive great tax benefits and a great return depending on who you invest alongside. 

If you want to invest in a single-family or duplex. I would put 20% down on a duplex and use the rest of the runds to fix it up. After 6 months you can refi and get your money out and doing it again. 

Good luck and looking forward to your success.

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