Ok guys I have finally made it home from my deployment and wanted to share with some of you GURU's my current situation. Maybe you can help lead me in the right direction.
Currently my (small) portfolio consists of:
1 commercial property in town that is paid off and appraises for $170,000.
1 single family home that cash flows $382 a month and I currently owe $40,000 on it.
1 primary residence that I currently occupy with my wife and 3 children.
I have no debt other than a truck payment, my bills with my primary residence and the mortgage on the SFH that has a cash flow of $382 a month. Consistently after all my bills are paid every month I have approximately $2500 left to save. This $2500 comes from my job and does not include my cash flow off that property.
I currently have in reserves $29k and I am now trying to figure out what to do with it. (Yeah I know, crazy that I can't figure out how to get rid of 29k lol)...
Normally I would not put all my business out there but I have learned so much from this website that I have no issues sharing with you guys, I have learned tons on this site. I guess my questions would be this…
How would you GURU’s invest the 29k?
I have also been informed by my bank that I could refinance the commercial land for up to $70k. The only problem is it’s a commercial loan and the rates are a little higher than a residential loan but this is an option that I have that will give me instant cash to play with.
Remember, I have 3 kids and a wife so security is a big thing for me. My wife and I are just really curious as to what you guys would say. All opinions are welcomed!
It looks like there are houses for sale near you for between 5,900-29,000. I'd check them all out and buy a few of them as rentals
I usually buy 1-2 houses a year and do about 90% of the repair work to save money then rent them for between 750-1000
I try to keep interest on all my debt under 5% for the long term and under 10% for the short term
For sanity's sake always keep 6 months of living expenses in the bank. You may be in a pretty good spot where you are.
Typically when you are out of cash, the next step can be becoming a promoter. You find a deal, get investors, add some small portion of equity, and take it down with investor money.
This allows you to do more deals, albeit at a higher cost since you are having to pay an investor, but it allows you to keep adding to your portfolio.
Welcome back from deployment!!! That's super exciting!
I am a buy and hold girl. So I would reinvest the money into great rentals. I would only put 20% down. This would allow you to maximize your rentalsn
@Chance Cooper I'm with @Elizabeth Colegrove I am a buy and hold investor as well. Find another SFR or 2 unit at a decent price then sit back and collect a profit every month.
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