I have a few rentals that are cash flowing. Nothing too serious, but each month they bring in an extra ~$1k total.
I’ve saved up an additional $100k and I want to know what the smartest play would be?
Should I pay off one of the mortgages on an existing property?
Should I buy another property? I could put the $100k down on a property I found that would then cash flow about $500/month.
Should I hang onto the $100k and wait for the inevitable recession?
Would it be possible to find an opportunity that has the potential for even more upside and profit? If so, what should I look for and how would I find it?
I have the $$ to invest, but I wonder if there may be a better investment than increasing my cash flow by $500/month. Or maybe that is the best I could hope to get.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Hi George,
I think it will depend on your overall situation. How many properties do you have and what are the loan balances? How secure do you feel about your income? Do you have reserves for your existing properties? I think if your LTV is 65% and lower I think you can look for another property.
I think you should stick to the type of property you know and build off of that. An extra $500 a month to your portfolio would be great as long as you don't drain your savings. Should keep $30k on the side just in case.