How would you invest $100k?

Question

Based on your strategy and where you're at in your investing journey, what would you do with $100k??

I ask because I would love to be inspired by other strategies, or perhaps better define mine!

I have $100k to invest after 3/1/22 and I want to purchase my first investment property. My ultimate goal is $120k cashflow per year by 2027 (essentially in 5 years), and while STR's make my heart pitter patter, I am also looking at out of state LTR's. I am in AZ so our prices make it difficult to get cashflow here (although appreciation is amazing so I might be able to leverage that).

Rick Albert · Answer

I would house hack as my first purchase.  To your point, if you are in a good appreciating market, you can leverage it with less cash out of pocket and a better interest rate.  I house hacked my condo with 10% down in Los Angeles.  I then pulled out a line of credit to effectively put 0% down on my second house hack.  Rents for my condo have gone up at least 10% since my current tenants moved in and I'm actually paying less than they are to live in a house.

Plus if you wanted to, rent out the place for 2-3 years after living in it for 2 years and if you sell, the money is still tax free up to $250K if you are single, $500K if you are married.  That way you can invest in a better cash flowing property if it makes sense to do so.

In theory you could buy two properties in the same year.  One as a personal residence with little down and the rest can go towards property #2.