$50,000 cash available to invest

64 Replies

Hello all,

I currently have $50,000 cash available to invest. Right now I own a SF home as my primary residence with $$60,000 in equity right now. I have read multiple books, watched online videos, and have gained a little bit of knowledge over the past year. I know there are many different strategies flipping, Wholesale, BRRRR method etc. I am ready to start investing and I would love suggestions on what I should do or what route to take to start investing in Real Estate full time.

@DeWayne Counce

Also I run my own business so I have lots of free time to be hands on, look for deals, meet etc so I can do all the ground work needed.

I’m in the same boat as you are I have around 50,000 to invest and would love to know the best route.

@Matthew Fassett

It's driving me crazy too because everyday that passes I feel like I'm missing opportunities ha. What I'm seeing is the BRRRR method may be the best route. Just trying to figure out how to take that initial step what to do first etc.

It really depends on your goals, but I think buy and hold is the best long term strategy. Maybe flip in this market until the correction, whenever that comes. But buy and hold is the best way to build long term wealth.

@Andrew Syrios

That's kind of what I've been seeing. Any suggestions, or strategies to find good deals on properties?

Originally posted by @DeWayne Counce :

@Andrew Syrios

That's kind of what I've been seeing. Any suggestions, or strategies to find good deals on properties?

With the market the way it is, I think direct marketing probably makes the best sense. Anson Young's book Finding and Funding Great Deals: https://www.biggerpockets.com/blog/introducingfinding-finding-great-deals/ is a good place to start IMO.

Haha. I forgot about Fanduel! 

Seriously though, if you have good credit and a good job, $50k is a good amount to be able to use for a down payment for a rental property as interest rates are still low. Also, depending on your current life situation, a house hack with a 1-4 unit property would be an excellent use too. 

@Kyle Godbout

Credit it's currently in great shape I wish I could house hack but my wife and I purchased a SFH 2 yrs ago and we also have 4 children. But I am thinking about investing in Multi family over SFH.

Try and get into as many cash flowing properties you can with as little cash possible. I always like to look at the return on my dollar. I want my dollars to compound as quickly as possible with respect to risk.

@DeWayne Counce

Hi have a look at this app it is called

Currencyheatwave. It shows you weak and strong currencies at any given time. Start with 1 to 5000 usd once you go through it . I know someone who made 3k into 250k in 4 years following this app.

@Frank Geiger

Thanks for that information. I will look into finding ways to invest with as little cash up front as possible. That will likely help me build up my portfolio quicker. I will look to partner with other experienced investors also to gain more knowledge.

@DeWayne Counce

I'm in the same boat. I've a wife and kids, have quite a bit in the bank ready to go, love the idea of a house hack, but we ain't fitting in a multi.

SFR is the only way I see it, conventional at that.

Problem in facing is I have cash to buy a property from a wholesaler but not enough to fix it up. Suppose I could go with hard money, but the time required and my current job don't match up. So it's scouring the MLS for decent homes I can conventional on. I come across them but get outbid, but barely.

They will come, I'm staying patient. But I can't help but feel this cash should be making more cash.

@Matt Brown

I understand completely. That's what is eating me up I feel like this money should be making money. But like you said I will stay patient and just wait on the right opportunity to present itself.

I will give you a different prospective... most of the time investors suggest things of what they are comfortable doing because they know how to do it or has worked in the past for them. 

Say you have 60K/.25 = 240K available.  

Assuming you have some reserves (ideally 6 times the monthly payment of your future loan), you could afford to purchase a rental SFR or duplex for 240K. Things to watch for, good credit score so you take the best interest rates available. Analyze and again, Analyze your market and strategies.  Pick one that you are confident (to some extent) and measure risk.  

As an engineer, I can't help but look at risk in a simple format.. just google "risk assessment matrix" and in there you can evaluate the cons and pros of your risks and consequences.  You will quickly find out what are your weaknesses and strong favorable areas within your skill set.  i.e. if you have 0 experience in flipping (a.k.a. BRR...) it may not be the best way to start your business (cost will be high, experience will be very low), making it likely for you to have a very high risk for failure... This is just an assessment, you may be very good at it without having the experience, but the like-hood of success is less.  

Good luck.

Updated 4 months ago

just want to change a typo... "prospective" to perspective...

@DeWayne Counce

I’m in a very similar boat as well. I also run my own business so I have time to do the extra work. A lot of the “gurus” make it seem like you should be involved in every part of the biz i.e. wholesale, fix and flip and rentals but considering if I should focus on one thing. Any guidance would be helpful.

I'm in a similar situation and am just planning to go for buy and hold as @Andrew Syrios mentioned. I just want to get my feet wet and expand from there.

@DeWayne Counce Benefits of Vegas is you put it all on black and boom you double your money right there lol

@DeWayne Counce . I’ll just give you my experience since I was in the exact same situation. Not everyone is the same- I realize. I thought I would try to quickly make that money grow so I started in the flipping game. I quickly found out that it was frustrating- anxiety ridden- contractors taking advantage and ripping me off while doing terrible work- I can go on and on. I lost 40 grand on my first two flips. I’ve seen a lot of people lose money just getting started with flipping. I firmly believe that buy and hold is the way to go. Since my flip flop- I have bought and held quite a few homes and multiplexes and it has saved me.

My suggestion. Buy and hold until you have money to gamble with- then try the flipping world when you have money to lose. I believe that you can win flipping, but the risk is higher and there is trial and error until you get the right team.

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