Best way to scale with 100k Cash?

Question

I have been house hacking a duplex I purchased for 350k for 2 years putting 3.5% down using FHA loan. I am planning on house hacking another multifamily putting only 3-5% down in a year. But I also have 100k I can put 20%-25% down on investment properties I would not live in. Is there a faster way for me to scale? My goal is 2k a month cash flow.

Corby Goade · Answer

The easiest way is to house hack again. Then again. Just repeat what you've already done every 12 months. Curious why you are waiting another year?

Wale Lawal · Answer

@Sean Gammons

To hit a $2,000 monthly cash flow in real estate, use your current plan. Try house hacking once more or use your down payment for rent properties. Look at small multifamily homes with high rent potential and get a regular loan to skip PMI. Another way is the BRRRR method—buy a rundown multifamily unit at a discount, fix it up, rent it out, and refinance to buy more. Do market research, use real estate tools, account for hidden costs, and build a good team to meet your goal. Remember, bigger is not always better, so focus on finding good deals on smaller multifamily properties.Good luck!

Kristine Ann · Answer

You sound comfortable with house hacking.  I would go ahead and do another owner occupied property and don't listen to anyone's advice. Everyone knows their own finances and what strategies work best for their situation.

You are probably making better real estate decisions with that 100k nest egg. You're also a great candidate for a normal mortgage and low interest rates.  I would put that extra 100k in CD's, bonds and an s & p index fund and continue to add to it.  Eventually you'll have 1 million and that amount invested very conservatively yields 3-5% and $2500-$4000 a month.  At some point you will be glad you have that cushion, whether it is to take advantage of an opportunity or avert a crisis.  Most people on here are way too overleveraged.

John Mason · Answer

Are  you  open to a  Joint Venture in an LLC? If so buy another STR property using a  LLC and a  private investor

Gregory Schwartz · Answer

Keep in mind that if you buy a rental property in your name using a conventional mortgage it will directly affect your debt to income (DTI). DTI is the determining factor for how much a bank will lend to you.

So what are your options:

1. Ask a lender to review your finances to confirm can buy the rental and then house hack again.

2. Buy the house hack first (usually the better investment) then work on getting the rental.

3. **This is my favorite** Buy the rental with seller financing, private money loan, or commercial loan in an LLC. These don't affect your DTI

Best way to scale with 100k Cash?

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