Received an Inheritance and Don’t Know How to Use It

Multi-Family and Apartment Investing
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Received an Inheritance and Don’t Know How to Use It

Ben Ashburn
Member since 2019 · 48 posts · 13 votes

I recently ran across Biggerpockets and immediately became hooked. I’m writing because of a unique circumstance and I’m hoping to solicit some advice from more experienced folks on how to best deal with it.

Recently, within a three month period, both of my parents died of cancer. Although I wish the circumstances were different, due to my dad’s wisdom and hard work I will be inheriting about $100k in cash and also a house with no mortgage worth another $100k. I want to turn this money into passive income and also use it as leverage to make a career of investing in real estate. I’m 42 years old and hope to have many years ahead of me to build a portfolio to leave for my family someday.

In light of all that, I’m hoping for advice. If you were me, knowing what you know now, what would you do with this windfall to produce the best results?! Although I’d like to become a full time investor as soon as I can, I know this is best viewed as a long term plan. It’s a once in a lifetime opportunity for me and I want to make my folks proud of what I do with it and grow it into something wonderful to leave my kids someday.

Thanks,

Ben

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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
7y

@Ben Ashburn

The best advice I can give is do not do not invest in anything until you understand what you are investing in.  Make your parents proud and turn this good fortune into a blessing 

Don't go investing in China, a syndication or anything else for that matter until you are comfortable.  There is NEVER a must time or a deal you have to have.  Always another one around the corner

I am assuming the house is not in Austin since you cannot buy anything here for that price ?  

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    7y

    @Ben Ashburn Condolences on your loss. From your post you want to invest in RE, be passive and build wealth. That being the case I'd invest the 100k with one or two of the top syndicators here on the site. Check out their credentials by contacting their past and present investors and reviewing how the investment met expectations etc. Be thorough. 

    You could keep the house and have it managed by a PM company. Or sell it and invest in more syndications or other RE financial products. All the best!

    1Reply
  • Gareth Fisher
    Manheim, PA · Member since 2016 · 131 posts · 138 votes
    7y

    Sorry for your loss.    Investing full time I would put on the back burner.   Its kinda like the game of chess imo, at first it seems simple but after awhile you realize the more you know the less you really know.    

    If you would like to buy a rental that's always not a bad idea but however keep in mind we are on a 13 year run and in late stages of a cycle.   No one wants to buy a dropping knife.   However if you can a get a house for 70% off or so, that will leave you a good cushion.  However in many markets finding a deal like is very difficult and takes lots of experience.    

    Stocks are once again currently over bought as of March 1st 2019.    

    I personally believe there is opportunity in China.    Trade deals are looking to be resolved. They have been in a downturn so there is a lot of room to run.   There early in there long term debt cycles and a young country.    Emerging market etfs, mixed with some bonds and cash.  

    I would put some in an high interest yield savings accounts, In case what ever investment decision you make doesn't work out.   If your new to investing,  I would probably put half away.  See what you can do with 50k for the next 5 years.  By then you will be a lot more savvy.

    I don't foresee real estate performing as well in the next 10 years as it did in the past 10.  jmo

    0Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Bjorn Ahlblad:

    @Ben Ashburn Condolences on your loss. From your post you want to invest in RE, be passive and build wealth. That being the case I'd invest the 100k with one or two of the top syndicators here on the site. Check out their credentials by contacting their past and present investors and reviewing how the investment met expectations etc. Be thorough. 

    You could keep the house and have it managed by a PM company. Or sell it and invest in more syndications or other RE financial products. All the best!

     Thank you Bjorn!  I am definitely considering keeping the house and renting it out.  That would be the safest and quickest way to get started.  I'm going to have to look into syndicators- not familiar with that term yet but because of good folks like you I'm already learning a lot.

    Thanks again

    0Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Gareth Fisher:

    Sorry for your loss.    Investing full time I would put on the back burner.   Its kinda like the game of chess imo, at first it seems simple but after awhile you realize the more you know the less you really know.    

    If you would like to buy a rental that's always not a bad idea but however keep in mind we are on a 13 year run and in late stages of a cycle.   No one wants to buy a dropping knife.   However if you can a get a house for 70% off or so, that will leave you a good cushion.  However in many markets finding a deal like is very difficult and takes lots of experience.    

    Stocks are once again currently over bought as of March 1st 2019.    

    I personally believe there is opportunity in China.    Trade deals are looking to be resolved. They have been in a downturn so there is a lot of room to run.   There early in there long term debt cycles and a young country.    Emerging market etfs, mixed with some bonds and cash.  

    I would put some in an high interest yield savings accounts, In case what ever investment decision you make doesn't work out.   If your new to investing,  I would probably put half away.  See what you can do with 50k for the next 5 years.  By then you will be a lot more savvy.

    I don't foresee real estate performing as well in the next 10 years as it did in the past 10.  jmo

     Great advice, Gareth- thanks very much.  I'm not too educated on this yet, but in what little I've learned so far I need to find great deals on properties to provide a cushion as you mentioned.  I live in Austin, TX and the market here seems to be strong, but definitely overpriced too.

    Interesting idea about China.  I'll do some thinking on that one.

    Thanks again

    0Reply
  • Gareth Fisher
    Manheim, PA · Member since 2016 · 131 posts · 138 votes
    7y
    Originally posted by @Ben Ashburn:
    Originally posted by @Gareth Fisher:

    Sorry for your loss.    Investing full time I would put on the back burner.   Its kinda like the game of chess imo, at first it seems simple but after awhile you realize the more you know the less you really know.    

    If you would like to buy a rental that's always not a bad idea but however keep in mind we are on a 13 year run and in late stages of a cycle.   No one wants to buy a dropping knife.   However if you can a get a house for 70% off or so, that will leave you a good cushion.  However in many markets finding a deal like is very difficult and takes lots of experience.    

    Stocks are once again currently over bought as of March 1st 2019.    

    I personally believe there is opportunity in China.    Trade deals are looking to be resolved. They have been in a downturn so there is a lot of room to run.   There early in there long term debt cycles and a young country.    Emerging market etfs, mixed with some bonds and cash.  

    I would put some in an high interest yield savings accounts, In case what ever investment decision you make doesn't work out.   If your new to investing,  I would probably put half away.  See what you can do with 50k for the next 5 years.  By then you will be a lot more savvy.

    I don't foresee real estate performing as well in the next 10 years as it did in the past 10.  jmo

     Great advice, Gareth- thanks very much.  I'm not too educated on this yet, but in what little I've learned so far I need to find great deals on properties to provide a cushion as you mentioned.  I live in Austin, TX and the market here seems to be strong, but definitely overpriced too.

    Interesting idea about China.  I'll do some thinking on that one.

    Thanks again

    The problem with real estate investing is you take on tremendous amounts of debt that your personally liable for.    There are ways around that for example if you used seller financing then you would be signing a non recourse loan.   I don't know if you own a home or not, but I would say putting the money down and paying off debt on your personal home could be a smart choice.  You would always be able to take it back out and access it again for investing purposes.   

    I would say an aggressive approach to investing would be a 70-80 debt to equity ratio, while a more conservative approach would be a 40-60% debt to equity approach.   I would factor in your personal finances into this.

    I'm not saying real estate investing isn't lucrative, but on a macro level in the next few years I expect to see a down turn.   There for I personally am limiting my exposure, buy focusing on flips and reducing my debt to equity ratio.       A flip will reduce my long term exposure to market fluctuations.   But still allow me to stay in the game for the near term gains.   Flips however are a lot more challenging from a newbie perspective in my experience.  Rentals are much easier to calculate.  Living in a market like Austin I think exposes you even more.  You could look at recent home sales more then likely the gains are starting to drop and you are starting to see early signs of the trends changing.  

    There is nothing like being rich in cash, during a down turn.    This will put u in a position to buy when everything is on sale.   The hard part is identifying the bottom.

    If you do pursue buying rentals I would try to do it through seller financing,  that way they are non recourse loans or if you go through traditional lending practices keep your loan to value amounts below 60%.  That way if your local market drops by 20% you still have plenty of equity.  This will also allow for strong cash flow on your properties.

    Keep in mind most of the investors you will meet and talk to have made money over the last 10 years and can't remember the crash of 2008.

    First rule of investing Don't ever lose money.

     I would look at maxing out your 401k every year from a long term perspective thats a really good place to start.   Most people should be saving 15% a year for retirement. 

    1Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Gareth Fisher:
    Originally posted by @Ben Ashburn:
    Originally posted by @Gareth Fisher:

    Sorry for your loss.    Investing full time I would put on the back burner.   Its kinda like the game of chess imo, at first it seems simple but after awhile you realize the more you know the less you really know.    

    If you would like to buy a rental that's always not a bad idea but however keep in mind we are on a 13 year run and in late stages of a cycle.   No one wants to buy a dropping knife.   However if you can a get a house for 70% off or so, that will leave you a good cushion.  However in many markets finding a deal like is very difficult and takes lots of experience.    

    Stocks are once again currently over bought as of March 1st 2019.    

    I personally believe there is opportunity in China.    Trade deals are looking to be resolved. They have been in a downturn so there is a lot of room to run.   There early in there long term debt cycles and a young country.    Emerging market etfs, mixed with some bonds and cash.  

    I would put some in an high interest yield savings accounts, In case what ever investment decision you make doesn't work out.   If your new to investing,  I would probably put half away.  See what you can do with 50k for the next 5 years.  By then you will be a lot more savvy.

    I don't foresee real estate performing as well in the next 10 years as it did in the past 10.  jmo

     Great advice, Gareth- thanks very much.  I'm not too educated on this yet, but in what little I've learned so far I need to find great deals on properties to provide a cushion as you mentioned.  I live in Austin, TX and the market here seems to be strong, but definitely overpriced too.

    Interesting idea about China.  I'll do some thinking on that one.

    Thanks again

    The problem with real estate investing is you take on tremendous amounts of debt that your personally liable for.    There are ways around that for example if you used seller financing then you would be signing a non recourse loan.   I don't know if you own a home or not, but I would say putting the money down and paying off debt on your personal home could be a smart choice.  You would always be able to take it back out and access it again for investing purposes.   

    I would say an aggressive approach to investing would be a 70-80 debt to equity ratio, while a more conservative approach would be a 40-60% debt to equity approach.   I would factor in your personal finances into this.

    I'm not saying real estate investing isn't lucrative, but on a macro level in the next few years I expect to see a down turn.   There for I personally am limiting my exposure, buy focusing on flips and reducing my debt to equity ratio.       A flip will reduce my long term exposure to market fluctuations.   But still allow me to stay in the game for the near term gains.   Flips however are a lot more challenging from a newbie perspective in my experience.  Rentals are much easier to calculate.  Living in a market like Austin I think exposes you even more.  You could look at recent home sales more then likely the gains are starting to drop and you are starting to see early signs of the trends changing.  

    There is nothing like being rich in cash, during a down turn.    This will put u in a position to buy when everything is on sale.   The hard part is identifying the bottom.

    If you do pursue buying rentals I would try to do it through seller financing,  that way they are non recourse loans or if you go through traditional lending practices keep your loan to value amounts below 60%.  That way if your local market drops by 20% you still have plenty of equity.  This will also allow for strong cash flow on your properties.

    Keep in mind most of the investors you will meet and talk to have made money over the last 10 years and can't remember the crash of 2008.

    First rule of investing Don't ever lose money.

     I would look at maxing out your 401k every year from a long term perspective thats a really good place to start.   Most people should be saving 15% a year for retirement. 

     That is a ton of great information- I'm going to read this a few times and let it sink in.  I really appreciate your willingness to share!

    0Reply
  • Dean Hunter
    Real Estate Broker · Washington, DC · Member since 2014 · 30 posts · 21 votes
    7y

    First me offer my condalances for your loss. 

    As for investing - I would advise you to educate yourself quickly by reading beginner books about investing in real estate. You will also find some great webinars and videos stored on YouTube. Biggerpockets produces a ton of great material print and digital. 

    0Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Dean Hunter:

    First me offer my condalances for your loss. 

    As for investing - I would advise you to educate yourself quickly by reading beginner books about investing in real estate. You will also find some great webinars and videos stored on YouTube. Biggerpockets produces a ton of great material print and digital. 

     Thanks Dean.  I've started doing some reading just as you mentioned.  Are there any particular books you recommend?

    Ben

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    7y

    @Ben Ashburn

    The best advice I can give is do not do not invest in anything until you understand what you are investing in.  Make your parents proud and turn this good fortune into a blessing 

    Don't go investing in China, a syndication or anything else for that matter until you are comfortable.  There is NEVER a must time or a deal you have to have.  Always another one around the corner

    I am assuming the house is not in Austin since you cannot buy anything here for that price ?  

    7Reply
  • Gareth Fisher
    Manheim, PA · Member since 2016 · 131 posts · 138 votes
    7y

    Start watching you tube videos on investing.  Kwak Brothers are good,  Ryan schrieber,  there are a bunch of dudes.   In those videos they will often speak of books.   Poor dad rich dad is a good place to start.  

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Ben Ashburn

    My condolences to you. And welcome to the right place to be right now. BiggerPockets was thought up for someone like you, with your needs.

    In the culture I was raised in, there is a very old tradition to do absolutely nothing, make no major life decisions, until 40 days after a loss. The wisdom of that tradition saved me from making some very serious life errors when I lost my own parents, and not following the tradition caused me additional grief.

    Take some time now and don't jump into anything. Do the Financial Freedom video course here on BP. Keep reading as much as you can. Put up a picture and tell us where you're from. Read the forums, make connections, ask the people who you feel make good contributions here for advice. Give yourself a budget of perhaps two hundred dollars to spend on used books from Amazon.com and other sources. Join your local real estate investm0ent association. Talk to your loved ones often about your plans now. Perhaps at some point it may be wiser not talk to them and even to stop listening to them. There will be time for you to make a reasoned judgment about this later.

    I know what a decent human being feels upon receiving an inheritance, however small or large. Your parents worked and sacrificed to give you this opportunity. Your own family deserves the very best you can offer them. It can be a heavy responsibility, and there's a horrible fear that you might squander it. There are any number of bad decisions you might have already made. But you haven't made any of them. You came here, and you'll get to know this remarkable little community in this most unusual corner of the Web better, and you'll give yourself a real chance to turn that inheritance into exactly what your parents would have wanted most for you and yours, lifelong financial security and freedom.

    3Reply
  • Jason Hendrickson
    Rental Property Investor · Park City, UT · Member since 2019 · 84 posts · 149 votes
    7y

    Don't focus on becoming a "full-time investor." That's the wrong target. Focus on becoming a successful, profitable investor. You hear a lot of people talking about being full-time investors or having X number of properties. Who cares. Tell me your net worth, NOI and ROI. That's all that matters.

    0Reply
  • Chris Babcock
    Member since 2018 · 63 posts · 52 votes
    7y

    @Ben Ashburn

    My condolences on your loss.

    One thing I would throw out there, based on the numbers you threw out in your original post is try to come to terms with 'how far' that $200k of assets will get you. In the real estate sector, depending on your location, that might be able to only get you 1 deal or it might get you 5 in the rust belt (or it might not be able to get you any deals if you're unlendable). I think a common misconception that people have when they initially get any sort of windfall is "How do I make this money equal financial independence for the rest of my life?" Frankly, unless you are inheriting millions this is probably not feasible however it will help get you on the right path.

    Some things to consider (in the form of questions for you to meditate on):

    - How is your current financial foundation? (Job, Debt, etc.) Can this windfall help shore up your current foundation?

    - What are your financial goals? What are your partner's financial goals? (if you have one)

    - You're in your 40's so it's time to start thinking about being more risk adverse. What financial pitfalls do you want to avoid into retirement?

    - Are you sure RE investment is the right path for you and your lifestyle? RE isn't a get rich quick or even a multiply money quick path.

    I would highly recommend reading "Your Money Or Your Life" if you need some ideas about how you want to be positioned financially for the rest of your life. And if you're in a relationship/have a family I would recommend "Smart Couples Finish Rich" as a primer for how to prioritize financial planning.

    Good luck!

    0Reply
  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y

    Hi Ben,

    The first thing you need to do is educate yourself and take your time. Spend a good 8-12 months just reading and think about your long-term goal. 

    To me, this is a simple and bulletproof plan barring a natural disaster.   Rent the house you have free and clear after you educate yourself, buy another house cash and rent that.  Now you have 2 homes probably netting you $1500-1800 a month. 

    Invest in China?  Hmm No.  Why risk losing it all?  

    Invest in a Syndication?  Hmm No.  Why risk losing it all?

    Invest in property with leverage? Hmm No.  Why risk losing it all?

    I am not saying that all of these are bad and an investor should not do it.  My point is that each one of them requires a higher level of skill and a higher level of risk.  I have invested in all of the ways above and I can tell you the easiest way to make money is buy cash sit and collect the check.  Easy.  The hardest thing about the cash strategy is getting the cash.  

    2Reply
  • Brian Ellis
    Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
    7y

    Sorry for your losses. I agree with @Greg H. make sure you are completely confident in that first investment, whatever it is. Its easy to get excited and act on impulse when investing becomes a reality. That happened to me, I took on a project that was extremely overbearing. You have the right attitude, doing it for purpose. 

    0Reply
  • Account Closed
    Rental Property Investor · Brooklyn NY · Member since 2018 · 263 posts · 469 votes
    7y

    I'm sorry for your loss.

    I would recommend putting the $100k in a savings account and turn the house into a rental. Then, start educating yourself on investing in general. REI, index funds, etc.

    You may find value here:  https://www.bogleheads.org/wiki/Managing_a_windfall

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Ben Ashburn

    I'm very sorry for your loss! I agree it's better not to have the inheritance than have such sad circumstances. 

    Since you're new to investing, go slow.

    1) identify how much time you can devote to investing

    2) based on nu. 1, determine whether you want to be active investor or passive one

    3) based on the conclusion in nu. 2, look into options available for either passive or active investors.

    I have a library of books. Reach out if you'd like the link. 

    0Reply
  • Greg Scully
    Rental Property Investor · Johnson City TN · Member since 2016 · 386 posts · 271 votes
    7y

    @Ben Ashburn - I'm sorry for your loss.  We experienced a very similar situation recently.  My wife lost her father and step mother within about a year of each other.

    You may want to talk with a CPA about any tax obligations that may result from your inheritance.  We ran into that with one of the sources of funds (a 401k scenario).  We are very grateful that they had the financial savvy and generosity to leave us an inheritance.  Our approach was to shore up our personal finances first (save 6 months of expenses).  We were already active with real estate, so we did not have the learning curve your apparently facing.  My advice would be to take it slow, there are many conservative ways you can put that money to work with minimal risk inside and outside of real estate.

    0Reply
  • Elijah Vo
    Investor · Fort Worth, TX · Member since 2014 · 59 posts · 51 votes
    7y

    @Ben Ashburn, sorry to hear about your losses, but I'm glad to see you were able to find a silver lining and start here.  I agree with several others here....at this point, education is key.  Renting out that house won't be an issue, but you need to start educating yourself with books, podcasts, articles, Meetups, and investing events/training. The more knowledge you gain, the more action you'll take.  Be careful though...don't sit on the sidelines too long and keep educating yourself; eventually, you'll have to jump in.

    If you're interested in syndication, there's a good event in Dallas this month hosted by Think Multifamily, called the FIRE Summit.  They have tons of education and networking there, so that would be a good start. 

    If you have any questions, you can message me anytime and we can jump on a chat or something! 

    Take care and good luck!

    -Eli

    0Reply
  • Dean Hunter
    Real Estate Broker · Washington, DC · Member since 2014 · 30 posts · 21 votes
    7y

    https://www.biggerpockets.com/store

    0Reply
  • Charles Kao
    Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    7y

    @Ben Ashburn

    Hey Ben,

    I think you need to ask people

    who know you better. I have had friends in similar situation and my advice would vary especially considering both of your parents passed away. Are you completely done on taking care of your parents estate? If anything really sit down and talk to somebody and explain your whole situation as posting your personal life on a national platform can be scary. .

    0Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Greg H.:

    @Ben Ashburn

    The best advice I can give is do not do not invest in anything until you understand what you are investing in.  Make your parents proud and turn this good fortune into a blessing 

    Don't go investing in China, a syndication or anything else for that matter until you are comfortable.  There is NEVER a must time or a deal you have to have.  Always another one around the corner

    I am assuming the house is not in Austin since you cannot buy anything here for that price ?  

     Hi Greg,

    Yes, the house is in northeast Missouri.  I see you're in Austin too so you know first hand that you can't even buy a cardboard box to live in for $100k here.

    You're right about making sure I understand what I'm doing.  That's the main reason I'm trying to get as much advice as I can and then sort it all out from there.  And yes, it is a wonderful blessing and I want to turn it into something my folks would be proud of.

    Ben

    1Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y
    Originally posted by @Jim K.:

    @Ben Ashburn

    My condolences to you. And welcome to the right place to be right now. BiggerPockets was thought up for someone like you, with your needs.

    In the culture I was raised in, there is a very old tradition to do absolutely nothing, make no major life decisions, until 40 days after a loss. The wisdom of that tradition saved me from making some very serious life errors when I lost my own parents, and not following the tradition caused me additional grief.

    Take some time now and don't jump into anything. Do the Financial Freedom video course here on BP. Keep reading as much as you can. Put up a picture and tell us where you're from. Read the forums, make connections, ask the people who you feel make good contributions here for advice. Give yourself a budget of perhaps two hundred dollars to spend on used books from Amazon.com and other sources. Join your local real estate investm0ent association. Talk to your loved ones often about your plans now. Perhaps at some point it may be wiser not talk to them and even to stop listening to them. There will be time for you to make a reasoned judgment about this later.

    I know what a decent human being feels upon receiving an inheritance, however small or large. Your parents worked and sacrificed to give you this opportunity. Your own family deserves the very best you can offer them. It can be a heavy responsibility, and there's a horrible fear that you might squander it. There are any number of bad decisions you might have already made. But you haven't made any of them. You came here, and you'll get to know this remarkable little community in this most unusual corner of the Web better, and you'll give yourself a real chance to turn that inheritance into exactly what your parents would have wanted most for you and yours, lifelong financial security and freedom.

     Jim, thanks so much for the great advice and kind words.  One of the main reasons I decided to post was because I'm afraid of squandering it with a bad decision.  Good folks like you are exactly what I need to use as a resource to make sure I don't.  I'm definitely going to take my time and do the research.  I love your book budget idea too.

    2Reply
  • Ben Ashburn
    OP
    Member since 2019 · 48 posts · 13 votes
    7y

    @Jason Hendrickson, @Chris Babcock, @Frank Wong, @Brian Ellis, @Account Closed

    All, thank you so very much for the kind words, encouragement, and genuine concern.  I had no idea my post would receive so many responses!  I don't have the time at the moment to respond to each of you individually, but please know that I will read and reread your answers and refer to them again often as I continue to think about the next step.  The common thread here seems to be to take it slow, don't do anything rash, and do my homework.

    What a great community of folks here!

    Ben

    3Reply
  • Kevin Williams
    Real Estate Agent · Nashville, TN · Member since 2019 · 4 posts · 1 vote
    7y

    Ben,

    I am so sorry for your loss. My wife has lost both of her parents before she was 40 and it has been a lot to deal with over the years. So, I have lived through this situation supporting my wife. Advice: Most financial advisors say you should put all the inherited money in a high yield money market account and let it sit there for a min of 6 months until you are mostly past the grief process and you are able to think clearly. We did not do that but that actually is good advice.

    Your story sounds so familiar to me because as I mentioned my wife suffered the loss of her mother in 2010 from cancer. Therefore, we inherited about the same amount after probate. I would like to tell you our story and I hope it helps you. A few years earlier, I had done some indepth research on the self storage industry and wanted to invest in that but my wife wanted a bigger home. So she immediately found the perfect home, we bought the bigger home and moved in it. Then I got busy dealing with renting our old home and rehabbing/selling the mother-in-law home as well as a maintaining a full time IT job.  So anyway the new home is everything we always wanted and a lot more like bigger mortgage, more taxes, bigger utility bills, a lot more upkeep cost, bigger lifestyle and on it goes. I am a realtor and know how to negotiate / buy real estate at great prices so we got a great deal on the home and it has lots of equity in it but it does not cash flow. 

    My advice is to invest in real estate seeking maximum cash flow such as multi family homes or apartments and/or self-storage. If you don't have the knowledge or experience to invest in real estate directly then research this website (also check out joefairless.com) and listen to all the many podcast (like Old Dawg's REI Network or Best Ever RE Advice) on RE investing and read the recommended books (like Rich Dad Poor Dad or REI for Dummies). Also, investing in syndication can yield good returns (usually start at about $40k) as a passive investment while you are learning the biz. Joe Fairless has a great book just released which teaches the entire process of syndication and/or you can just invest with him (I read the book and loved it).

    All the best to you and family,

    Kevin Williams

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