What to do with $100k and $16k monthly salary (combined)

What to do with $100k and $16k monthly salary (combined)

Member since 2021 · 3 posts · 0 votes

Hello All, my wife and I are hoping to make the most out of $100k that we’ve been able to save over the last few years. I’ve considered buying a car wash or laundromat, lending the money to friends that can use it for capital investment and pay me back in interest, and lastly and probably most realistic, buying an investment home in the local area (SoCal). We make a decent amount per month to have another $40k in 12 months without saving aggressively. Trying to avoid “paralysis by analysis” but it’s so hard to commit to something and potentially lose all of the hard earned money. We both come from very modest backgrounds so want to be very sure we make the best investment. Ultimately, I’d like to make an investment that requires little work and will most likely give us a small return either monthly or upon completion. Was hoping to get some ideas from those with more experience. Obviously nothing is guaranteed and we all have different goals but maybe some of you can still chime in with some helpful info. Thanks! 

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  • Lender · Raleigh, NC · Member since 2017 · 35 posts · 20 votes
    5y

    It sounds like you are steering towards a rental property. Would you manage/run the car wash or laundromat? If so, do you know anything about those businesses? They may not be as automated as you think, although I have no idea. When I used to sell commercial real estate I would meet people all the time who wanted to buy a restaurant and then quickly realized that they just bought themselves a 16 hour per day job! So that may be something to consider.

    As long as a deal makes sense, you can't really go wrong with purchasing a small rental property and getting your feet wet. Nothing is perfect and owning real estate doesn't come without it's own set of headaches, but from the sound of your post it seems like a good option for you, in my opinion. Hope this helps :)

  • Investor · Memphis, TN · Member since 2016 · 279 posts · 257 votes
    5y

    Laundromats can be great investments, but take time to build clients and a lot of upfront work. Once they are up and "spinning"...(sorry...too much coffee this morning) they are wonderful investments. There's a steep learning curve though, as laundromats thrive in places where laundromats are needed most...areas of town where folks don't have access to washers and dryers in their home. Overall though, my war stories are fewer and the lessons learned along the way aren't that expensive. I can't think of anything wild that has happened that cost more than $1,500. Can't say that for my SFR's or any other business I own.

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