100k What would you do?

3 Replies

IF someone handed me $100k I would......

put a 25% downpayment on a rental property and rent it out for 3 to 5 years and refinance and pull out my equity out, and put it into a larger rental property as a down payment... Buy Rent Refinance Repeat
Originally posted by @Josh July :

IF someone handed me $100k I would......

put a 25% downpayment on a rental property and rent it out for 3 to 5 years and refinance and pull out my equity out, and put it into a larger rental property as a down payment... Buy Rent Refinance Repeat

 Keep in mind my market is less expensive.

I would buy a dated, but functional SFR at below market value using the 100K for the down payment. This would probably cost around $125K for properties that meet my criteria in my market, so the down payment would be about $25K. I would do a modest rehab for an additional $25K.

Hopefully I would be able to do a cash out refinance and get a good chunk of my money back after the rehab and I would rent the property out providing me with cash flow.

@Josh July I'd say it depends on whether you want to be active or passive investor, and whether you want to deal with tenants or not. If the answer is indeed - active and want to deal with tenants, that I'd advise to follow @Anthony Gayden advie and get into multi-family!