Inspector · Raleigh, NC · Member since 2017 · 55 posts · 25 votes
You need to invest 100k. Lets just say all things aside you have a measly 100k to invest in real estate right away. Without starting a business in your opinion what series of investments would generate the best return with average market risk.
I do have a plan already but I would love to hear other intuitive answers as well. Thank you!
*disclosure - any answers below are not investment advice and should not be considered as such but mearly educated opinions by professionals.
Investor · Charlotte, NC · Member since 2014 · 80 posts · 45 votes
9y
Go to your local tax office. Look at list of upcoming foreclosures. Check out the houses. Do some due diligence. See if any of them can be bought cheap, and figure out rehab costs. Run some numbers. Find out the ARV. See if there is a profit margin, and how much equity the house could have after repairs. Determine if you could either A) flip the property and profit, or B) rehab and refinance to repeat above steps (BRRR strategy). Purchase house. See if you can secure private money or hard money for rehab. If not, use the capital. You can sometimes build equity if making the right deal. Keep remainder of $100K for future purchases. Some of these houses in certain areas can be bought for a substantially good price from tax liens. Make some money, or set yourself up for some passive income. Rinse. Wash. Repeat.
I have successfully done this four times, and I had a LOT LESS THAN $100K when I got started. It is risky, but if you do your homework and find the right deals, you will receive a significant amount of leverage which you can use for future endeavors. Just don't get burned!
Also, using money as a downpayment on multis is never bad, as long as the money is being made on the purchase.
Either way, by having $100K, you have a lot of options! It all just depends on what you want.
Rental Property Investor · Springfield, MO · Member since 2018 · 32 posts · 6 votes
8y
@Kory Denny I'm a little late coming in the conversation, but I saw that you planned to use VA loans. I was curious how you would do this. I've read that you cannot rent out a home that has a VA loan on it. Also, I've also heard that VA loans have a lot of red tape you have to get through in regards to condition of the house. Just curious as to your experience with it as we have thought about going that direction, because of the appeal of no money down.