What would you do with $100k if you had it today?
I live in Portland Oregon, so thoughts on coastal/cyclical states are great, but also open to the BP greater mindset! This question isn't about me...
Say you're already moving along in RE related business in today's climate... making the right moves in whatever market you're in. If one day you looked and you had $100k liquid and tax free in your accounts your goal was financial independence and wealth generation... what would you do with it? Where would you put it and why?
Would you put it into marketing? How much? Would you buy flips to keep growing the egg? Would you look for BRRRs? Single family? Multifamily?
Where would you look? What would you look for? Why?
Where would you start steering the ship? How would you keep multiplying your $$$??
If I already had enough units I would start paying them off.
Maybe also do some capex upgrades that will be needed eventually but not right away - like new windows.
If I didn't have enough rental income I would look for another acquisition or 2.
Thanks, @Max T. for the thoughts!
You would steer the ship toward paying off your properties once they would generate the passive income you'd need to live freely once they're paid off, then? Do you mostly buy SFH or do you buy plex-es as well?
If I had a successful business model that was working well I would continue to use it. I might also consider branching out to another aspect. For example, for many years I was a strictly buy and hold investor. I then bought a rental that had enough land to develop a duplex behind it. That was my first foray into development and have continued small developments over the last 10 years. But there is a learning curve for each aspect of real estate so I would initially take a small step into whatever new aspect of real estate you choose.
I like thought exercises like this. I hope more people will share their thoughts.
If I had 100k liquid.......... I would do one of two things ....... pay down existing properties to increase cash flow or venture into the next business model be that another form of real estate or some other business.
I am pretty conservative/opportunistic. I am having a harder time finding good deals in my market and not yet willing to invest outside my own town. With that in mind, I would probably put put it on my personal residence. I would likely open a HELOC to be ready to jump on a deal.
Originally posted by @Bob B.:
Thanks, @Max T. for the thoughts!
You would steer the ship toward paying off your properties once they would generate the passive income you'd need to live freely once they're paid off, then? Do you mostly buy SFH or do you buy plex-es as well?
I've always gone for 4 plexes in my market but have never found a good deal on any. So I've ended up with a few duplexes and SFH.
@Bob B.
For me, I’d put it all to my mortgages. I don’t like debt, it doesn’t help me sleep at night to be leveraged. Plus it’s hard to calculate risk. Risk can literally bankrupt you.
Half in silver, half in my second business that’s crypto & technology related.
Top off the emergency fund.
Pay down high interest debt.
Find and fund the next investment property.
In that order.
@Karen O. I like the way you think!
I would pay all my consumer debt and buy a rental cash