What to do with $50,000 in Kentucky?

[Phil Van Dyke]

If you had $50k at your disposal to invest in real estate, which avenue would you choose? Would you fix and flip? Or would you buy and hold? Doesn't have to be answered by a Kentucky resident.

[Brad Noe]

@Phil Van Dyke

With an ultimate goal of building passive income, if I just suddenly acquired $50,000 I would use it as a down payment for a couple of SFR's that I can renovate, build in some equity, rent for cashflow, then refinance in 6-12 months and do it all over again (what @Brandon Turner calls the BRRRR strategy).

This is exactly the strategy I already employ. I most recently put $15k down on a foreclosure in Jeffersonville, IN (just across the river from Louisville) that I acquired for $45k purchase price, then put another $20k in to renovate. The estimate ARV (after-repair value) is $120k, and I have tenants moving in today paying $1050/mo. which should provide about $350/mo. in cashflow after all expenses. I will refinance later this year and roll the funds into the next project.

Do you have any investing or construction experience/knowledge?