What would you do with $200k?

Question

What would you do if you had $200k to invest today? Would you invest in STR, if so, where? Would you try and get a mobile home park? Would you try and do flipping or BRRR?

I am looking for creative ways to try and invest. STR market (Broken Bow) is extremely hot right now, and was wondering if there are maybe some better ways to invest today?

Eliott Elias · Answer

I would put the lowest down payment possible on as many properties as I can that can rent to cover the mortgage. I’d make sure these properties are in a growing area that will appreciate

Josef Hardi · Answer

Hi Cole,

Pretty close to real life situation. What I ended up doing was getting a duplex in Southern California, I plan to live in one and then STR the other. It'll be a learning experience for me. But I did my research via Robuild shows as well as airdna analysis.

My next STR would probably be in destinations that I would love to personally visit every year. I'd probably try to get a second home loan for that.

I did explore mobile home park, but after further consideration, I'd rather get a duplex / SFH because of appreciation factor.

I also did explore flipping and/or BRRR, however, I would first need to have a solid construction/renovation team. I decided to wait on that until further notice.

All the best!

Robert Wilson · Answer

I would buy a deeply discounted vacant lot that I could subdivide and build 2 houses on. I already have massive amounts of experience wholesaling so I know that in the future I would be able to find more vacant lots. (bc I've found them in the past) Then with my newly acquired development/new construction experience, I would do what I just did building those 2 houses except on a much larger scale. 25-30 new builds in a subdivision development. Take most of the profit I make from selling the houses and roll it along with debt into buying large multifamily deals that CASHFLOW!!

Peter Mckernan · Answer

What would you want to do? Could you and are you willing to BRRR? Or are you willing to House Hack? The mobile home park avenue is great; however, the $200,000 amount would get you an LP position. An STR would bring in big money, and that is a great avenue, make sure you know the area and regulation in that area you will invest. The areas where STRs are can change quickly, so be sure to stay up on them. Do you want an active lifestyle in investing (flipping) or more of a passive one?

A lot of questions for you to dig deep on before you know which route to take.

Paul Moore · Answer

Hi @Cole O'Dell. It really depends on what you want.  If you have a great job, career, life, and family already, and want to invest passively, then I would check out syndications and diversified funds.  If you are using this to start down the active real estate investing path, I would consider an Air BnB in a very hot location. I would consider Gatlinburg, TN.  In fact, I know a guy who specializes in finding the right property for highest cash-flow there.  PM if you would like to connect with him.  Good luck!

Cole O'Dell · Answer

Thank you, Josef! Sounds like we really have had some similar thought process. I wish you all the luck with your duplex!

Cole O'Dell · Answer

Thanks for the response, Peter.

Flipping or doing BRRR would be a difficult task for me currently due to there being three people investing together and us all living in different states. So, managing a reno project could be pretty difficult due to proximity.

For the last few months we have been looking at doing a STR in Broken Bow, Oklahoma. The revenue generated there seems to be very promising. However, property prices have skyrocketed in the last 3 years from 150% to 400% increases on some properties. We actually just went under contract for a house that seems like the best deal we could find, but we got hit with 7.7% interest rate on our loan- making expenses and margin for error drastically different. We are trying to be smart about our options and make sure we are not acting out of FOMO. But we just aren't as confident as we were say 90 days ago.

What would you do with $200k?

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