what would you do with 10k

21 Replies

What would you do with 15k if you live in a state where there is high property values in which the 1-2% rule doesn't make sense? IE: NYC, CALI

I don't think you could buy much in those states, with $15K, unless you partnered with someone. Perhaps you could invest in another state.

fair enough. What state would you invest in and why?

You're best off saving that money and trying to buy something when you have more. Even a cheap $40k house will take all your money (closing costs and down payment) that would leave you with no cushion if you need to replace a roof or couldn't find a renter for 6 months.

Definitely save up some more money, well at least if you're going in on an investment alone. I would say network a lot and meet some local investors that you could partner with, if that's something you would be willing to do. I personally partnered and it was a really great experience. Best of luck!


@Jack W. Wong  Start in a less expensive market where you can find low priced homes.  Possibly find a partner, or maybe even an owner financed deal.

Brandon Turner just put a book out about no money down investing.  If you're creative enough you can always find a way to make it happen.

This post might be helpful as well:


Like most everyone is saying, I would keep your money and save more. The problem with having such a little amount is that most lenders need at least 30k to be able to lend on an investment property. Not saying that is true from everyone, but that is what I have witnessed in the past. 

If you are not looking to finance, then defiantly find a partner to where you both would have more liquid cash for the property.

@Jassem A.  I thought it was strange that you said there are some properties around Flushing, NY for around $10k... I hope you realize that the link you posted is for rental rates in the area.  I doubt you can find a decent single family residential property for less than $750k in that area.

True but the rehab costs would be huge and 10k wouldnt be able to cover. I rather save up more or join a partnership

The properties look better the closer you get toward 30k but I'm guessing they are all in undesirable locations

I would buy shares of an ETF that follows oil prices. 

you guys seeing this, oil is crazy cheap right now!!?  

10k could nearly cover the closing costs and 5% down on a 70k house. If you are a homeowner, you mustn't forget you'd need 6 months of your own mortgage payments and 6 months of the new mortgage payments in liquid reserves. In our case, we'd need 24k in the bank to buy a 70k house - and there's not a 70k house in my area that would qualify for FHA financing. Not to mention I hate the idea of PMI eating up my cash flow.

I would figure out a way to grow that 10k. Partner, flip, side job, hustle, wholesale - whatever it takes.  Whatever you do - don't spend 10k on a burned out shell of a house in Irving, NJ.  "Some fire damage"...  ha!  Leave those gems for Jassem.  

Pay off any personal debts that you have to allow you to save even more each month. If you're already debt free then continue to save until you'd have enough to put down on a property or partner with someone.

@Jack W. Wong  

Save up more money.  You will need money for all the unforeseen things that can happen after a purchase.  I think it's best for a first investment to buy locally so you are there when things happen. 

@Bryan N.  I agree with buying locally unfortunately I live in NYC and the prices are unfriendly for buy and hold

Find a real deal, use hard money, where the deals ARV is say 200k and they will finance it for 75% of that (150k), and they will give money for repairs if it fits into the 75%. Use the 10k for points if need be. My friend several months ago got a call off craigslist from a home owner where they tied a home up in Randolph, NJ where the owner was in FL and just wanted out. He could have easily done this, but choose to wholesale it instead. He asked 195k from rehabbed, and rehabbed sold for 455k.

See what I found on #Zillow!

partner or wait. Even if you invest remotely you don't have enough in cash on your own. As others have stated, real estate is like an alligator. If it turns on you, everyone is going to stand by and watch you get eaten.

I like to have enough in cash to not only do the required repairs, but also the elective repairs that make it a stronger property,

Consider investing in a REIT for the dividend payments to keep you in the real estate industry and save, add, save, and add until you have what you need to pull out and purchase that investment home.  Just an idea, may not fit your need, but it is an option.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here