Virginia Beach, VA (Virginia Beach) · Member since 2018 · 6 posts · 1 vote
I purchased my first home a little over a year ago in San Diego, CA. I am currently paying well over the mortgage but I have become increasingly interested in purchasing a second home as an investment property. My question/concern is what I should do with my money now to prepare/enable me to purchase a second home in the future.
Should I continue to put more money into my current home than required, or should I do something else with this extra cash in order to allow it to accumulate and enable me to put money down on a second property? Any recommendations on investing this extra cash until I accumulate enough to put 20% down on a home?
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
Yeah, I'd stop putting money into your house. Put that extra money to work. And besides, appreciation in San Diego will probably serve you well. Why rush to pay off your house?
One thing I've been doing to increase capital, and make more money than any bank is going to pay, is invest in out of state flips. You're in first position on the house with multiple exit options, it's a great deal IMO. Happy to share more details with you.
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
8y
If you want cash short term I believe that you should keep it liquid. Many will say put it in money markets, bettermint, etc. I think it's very valuable to just have money liquid in a high yield savings account. You always know you have it when an opportunity presents itself. But everyone has different ways they feel comfortable holding their money!
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
Yeah, I'd stop putting money into your house. Put that extra money to work. And besides, appreciation in San Diego will probably serve you well. Why rush to pay off your house?
One thing I've been doing to increase capital, and make more money than any bank is going to pay, is invest in out of state flips. You're in first position on the house with multiple exit options, it's a great deal IMO. Happy to share more details with you.
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
Hey @Matt B.. I put together some in Birmingham AL. My business partner puts them together in Memphis and Cleveland. We have teams in each location. We start by building a team in each city. I'll DM you details.
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
@Matt B. I should mention I actually started by investing in my partner's flips and liked the model so much I began building a team of my own and we work together to get them rehabbed and sold.
I purchased my first home a little over a year ago in San Diego, CA. I am currently paying well over the mortgage but I have become increasingly interested in purchasing a second home as an investment property. My question/concern is what I should do with my money now to prepare/enable me to purchase a second home in the future.
Should I continue to put more money into my current home than required, or should I do something else with this extra cash in order to allow it to accumulate and enable me to put money down on a second property? Any recommendations on investing this extra cash until I accumulate enough to put 20% down on a home?
Save it until you can afford the 2nd down payment. If your goal is a 2nd property no need to spend it on over improving the 1st property.