I have 300k cash to invest. How would YOU use it.

8 Replies

I am 54 years old. My goal is to generate income for retirement. Will have approximately $80,000 a year generated from flips after living expenses to reinvest and also have a private investor with deep pockets.

@Deano Vulcano that's great!  Generating nice income from flips and having a lending partner.  I assume you don't plan on flipping in retirement?  Talk about non-passive income!

Originally from your title I thought YOU had $300k. Partners change things a bit for me, as it adds multiple layers of complications.  Many do it. I have chosen not to.  Many have offered to 'invest' but I don't want the oversight or in the end, to possibly lose a friend.

I like small multi-families in my backyard.  4 unit properties are nice, as they are residential, but my sweet spot is the 7-24 unit.  Especially if you have the money to buy outright or come up with 25%+down payment requirements.  Can you see yourself mowing the lawn (I still do it because I like to) of your little apt bld in retirement?  Works for me!

I do have 300k plus a deep pocket private investor as well as access to bank money. Here's my thoughts:  Buy the first two properties for cash, and 8 more rental properties by the end of next year putting $25,000 down on each with 15 year notes. Take all the cash flow from properties one and two and put it into property 3 for early payoff.  When that's paid off, put cash flow from those three into 4th, rinse and repeat.  My goal is to generate $10,000 a month free and clear on 10 rental properties in 10 years.

@Jay Hinrichs Thanks for heads up. I see a Charleston trip in my near future. But I don't see myself on the rider yet. We are also 30 minutes from Charlotte...major growth there as well.

@Deano Vulcano

  based on whats happening in Charleston If I was going to make a move to any market in the country right now.. that's were I would go and set up shop... for many reasons.

and its a really cool town... !!  I was just there last week...its small enough that smaller investors can get in and play.. but strong enough that properties sell .. and rentals are tight. not anything a TK type company would look at as margins are too tight but... its got a lot of room to run

PS I googled your town.. I just fund a deal in Rock hill for a flip... :)

@Deano Vulcano you can purchase ten properties and use the cash as reserves and down payments. @Jay Hinrichs always has great advice! 

Here is some general info on conventional financing.

http://www.biggerpockets.com/blogs/5110/blog_posts/42789-conventional-financibg-available-for-up-to-ten-properties

Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923

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

Join the Largest Real Estate Investing Community

Basic membership is free, forever.