What woudl you do with 100K

11 Replies

If you had 100K to invest in real estate what would you do with it? Would you loan it out to another investor? Spend it all on farming? Buy a small home for cash? Put a down payment on a multi-family?  I'm curious what everybody thinks the highest and best use of 100K is. I look forward to your comments!

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

Originally posted by @Ed E. :

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

 Sounds interesting

Would you mind saying what area has houses for 25k including fixing my what need to be fixed?

M

Originally posted by @Michael Plante :
Originally posted by @Ed E.:

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

 Sounds interesting

Would you mind saying what area has houses for 25k including fixing my what need to be fixed?

M

There are multiple places throughout the Midwest.  I own two houses in Indiana - I paid $4,000 and $7,000 for.  Kentucky, Ohio, Tennessee (though TN is getting pricier), etc etc.  Do a nationwide Zillow search on homes between $1075 and $25000 and you’ll be surprised at what you find.

Originally posted by @Ed E. :
Originally posted by @Michael Plante:
Originally posted by @Ed E.:

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

 Sounds interesting

Would you mind saying what area has houses for 25k including fixing my what need to be fixed?

M

There are multiple places throughout the Midwest.  I own two houses in Indiana - I paid $4,000 and $7,000 for.  Kentucky, Ohio, Tennessee (though TN is getting pricier), etc etc.  Do a nationwide Zillow search on homes between $1075 and $25000 and you’ll be surprised at what you find.

My Zillow only goes down to 50 k

How do you set the filter to 1075 to 25k

I’d buy 3-4 single families at 20 percent down

There isn’t a good answer to this without more information about the investor’s free time available to manage/improve property, current inventory of skills and abilities, risk tolerance, end goal, and time horizon.  

The highest and best use can be very different, based on the factors above, and where the investor falls in those areas. 

Originally posted by @Michael Plante :
Originally posted by @Ed E.:
Originally posted by @Michael Plante:
Originally posted by @Ed E.:

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

 Sounds interesting

Would you mind saying what area has houses for 25k including fixing my what need to be fixed?

M

There are multiple places throughout the Midwest.  I own two houses in Indiana - I paid $4,000 and $7,000 for.  Kentucky, Ohio, Tennessee (though TN is getting pricier), etc etc.  Do a nationwide Zillow search on homes between $1075 and $25000 and you’ll be surprised at what you find.

My Zillow only goes down to 50 k

How do you set the filter to 1075 to 25k

Use the desktop version rather than the phone app :)

@Ed E. I think it depends on what your comfort level is as well as your experience/background. I would use it for a flip. I would put 15% down on a single family purchase and flip a property in a desired market with a target on the move up buyer. 

Some inner cities and rural area's have cheep housing. I have bought several houses for 25K in eastern Ky. Or you can always get into the property tax services. 16% interest and fee's here in Ky. However its a lot to keep up with and then you have to foreclose on the property if they never pay you their tax bill. But many companies make a killing on it.

Originally posted by @Ed E. :
Originally posted by @Michael Plante:
Originally posted by @Ed E.:

I would buy four single family homes for cash in the midwest.  Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

 Sounds interesting

Would you mind saying what area has houses for 25k including fixing my what need to be fixed?

M

There are multiple places throughout the Midwest.  I own two houses in Indiana - I paid $4,000 and $7,000 for.  Kentucky, Ohio, Tennessee (though TN is getting pricier), etc etc.  Do a nationwide Zillow search on homes between $1075 and $25000 and you’ll be surprised at what you find.

 While this works for you, it's not likely a good idea for a new investor. Too much risk, too little returns, and way to much turnover for new OOS investor. Plus finding someone to manage this can be more difficult because of the low price points.

@Benjamin Herrmann it depends on what type of REI experience you're looking for. If you want truly passive then loan to other investors either as an equity partner or private money lender. If you're willing and able to be more hands on, cut your teeth on a few flips or use the BRRRR approach on a few self-managed single family or residential multi-family properties. This will help you learn the ins and outs of rehabbing, financing, property management, and marketing. At some point, I'd recommend transitioning into commercial multi-family. Best of luck!

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