I have money ... now what?

Question

I am a first time home buyer and after purchasing my first home (home of residence), I’ll have 25,000 left. I don’t know if that’s a lot but my goal is 2-3 rental properties.

What should I do with my $25,000?

Joe Cassandra · Answer

Invest in marketing.

You could probably put 10k in and get 3 great deals out of that.

I used to live in DFW, but not sure the market now (sure it's super hot), so depends on competition in your area...but if you can find a lesser competitive area, your 10k in marketing will stretch farther...i.e. you get more deals per 10k.

In GA, it's about 3,500 in marketing spend per deal. (GOOD deal. You could do more than that on marginal deals).

Robb Almy · Answer

You might consider investing in yourself and furthering your REI education with SOME of the money. Since you are here you are already doing that...kudos to you. Best wishes and good luck.

Paul De Luca · Answer

Since you're a first-time home buyer, I would suggest investing the $25k in something relatively liquid so you can access your money easily if a major expense came up. An index fund, for example.

If you want to be more aggressive, find a partner that will house hack a multi-family property and go in 50/50 while your partner lives in & manages the property. That way you'll have some rent money coming in.

What you can do with $25k largely depends on your market and level of risk you are willing to accept.