I would find a partner with $100k to invest and take down a C+ or B- multifamily property with as many units as I possibly could and split the equity and cashflow 50/50. If you could bring in a third partner with a high net worth (if needed), then you could possibly take down a multifamily project valued around $1.00M, add $250K in value and then refinance out with a loan intended for small balance multifamily projects (like a Freddie Mac Small Balance Loan).
That'd be the most killer situation I can think of with $100k cashola.
With 100k I could buy at least 1 property for cash at city auction or buy 2 maybe even 3 with a downpayment. It really depends on what your goals are. I'm in this for long term buy and hold. More than likely I would try to get 2 or 3 homes with the 100k. Unless the house at auction was very undermarket and I could get at least a 50% return on my money for the house paid in cash.
I had this exact situation 5yrs ago. I used 100K as a down payment on a condo in a market that pulls high weekly rental during the summer and stable monthly rent Jan-April. This property pays for itself and I have about $180K equity. At some point I may do a 1031 to find a larger property that pulls more rental income.
If you are investing in a property that isn't near you it is important to have vendors that you trust. General contractor/ repairman, housekeepers, and property management, if you choose to go that route. Also, do your research on the property by reading HOA notes for upcoming assessments and issues that need to be addressed. An HOA can make you or break you! Hope this helps and good luck!
I would hang on to it for a bit. With all this talk of a recession id wait to see what happens and keep saving. Right now, it's a sellers market and pickings are slim with high prices. If it does happen (Which I hope not) I'd pick up some nice deal or deals.
First I would look at your personal goals. But for me I would look to find a partner and find a large multi family and split the cash flow between the partners.
Low risk high reward investments like STR that don't require long 30 year mortgages and being tied to a liability that might lose 30% of its value in the next 5 years. Basically a strong cashflow business with limited debt.
Or "short term" private lending (secured by the asset with a 60-70% LTV, 7-12% interest with points)
Or put if it's all you had then maybe a house hack type deal.
If you're very risk averse then precious metals, or nothing. (sometimes the best investment is the one you don't make.)
Personally, I would first do a househack. Then I would use the remaining to start BRRRRing. I would want to acquire 20-30 SFRs. Then I would probably debt snowball them. Using what is left of the 100k to start the snowball. Then I would only acquire new property when the deal was too good or I needed it for tax savings.
@Eric Oszczypala. Funny you ask as I did and this is what I did with it. I found a wholesaler that had a good deal for $60,000, bought it, will be increasing rent to $900 month I'm putting in about $10,000 - $15,000 worth of reno. In 6 months from yesterday I'll pull the money out do it again. I'll save the rest for a rainy day or there is another deal, maybe with a mortgage.
Great input here, I was thinking about partnering up with someone and looking into buying a large multi-family apartment complex. If anyone is interested please DM me.
@Eric Oszczypala depending on your overall investments goal you could buy a smaller deal yourself or invest passively in a syndication. That being said, having cash right now is not a bad choice. If you choose the syndication route, make darn sure you properly vet the sponsorship team. Just because they blast social media content and fluff does not make someone credible. Cheers
I am looking into buying a multi family but smaller. I have been investing in SFR market and its been doing really well so far, but i been thinking about something bigger as my next investment to create bigger cashflow.
I am looking into buying a multi family but smaller. I have been investing in SFR market and its been doing really well so far, but i been thinking about something bigger as my next investment to create bigger cashflow.
Excellent. I have heard of mailing directly to 5-40 unit properties worthwhile as they are typically mom and pops that may be willing to sell directly to you.
@Eric Oszczypala there's nothing you can do with the current market. Only adapt to it. Be very conservative in your approach when analyzing deals considering we are in a sellers market. Whatever you do make sure you buy for cash flow and don't bank on appreciation.
I agree, you have to adapt to the current market and find good deals. Its funny about appreciation, i never really took that into my analysis, plus rents going up, this was amazing because my properties did go up in value and rents went up :) winning...hahaha
You should do more of whatever you did to get the $100k then repeat as many times as you can.
Well, that's not 100% true. I got my 1st $100K to invest working my butt off for someone else 45-55hrs / week. I would want to avoid repeating that until retirement and that's why I am here. Now if he made the 1st $100k through investing then I would agree for sure.