Best use of investment money??

Question

Ok, so I know this topic has come up quite a few times. And I have read a lot of the responses. But every situation is different so I decided to ask your opinion based on my situation.

I'm looking to invest. I have roughly 25-30k to do so. I have a full time job that pays well, but I'd like to eventually become a full time investor.

I want to know what the best use of my money is? I'm not looking for the "get rich quick" plan. I understand it takes time. But I'd also like to use any income I do earn to reinvest. So the more money and the faster it comes, the better!

Should I be looking at buy and hold rentals (SFH or Multi-Fam), flips, auction homes, lease to owns, etc...I've read a lot of mixed reviews on wholesaling so I'd rather not get into that.

How would you use this money? What has the highest earning potential?

Any help would be greatly appreciated!!

Mark Lord · Answer

Account Closed

I was thinking the same, which I why I asked this question. I know in the long run, this is the way to go and I'm sure after a few years, I will own a handful! But Im really looking to get the ball rolling now. It would pay off if i found the right property to hold though. Numbers would have to make a lot of sense.

Steve Olafson · Answer

In my opinion, buy and holds are only valuable if they are throwing off enough cashflow to matter.  An apartment building or retail strip mall that throws off 25K per year or more.

To accomplish this you could do as others have suggested and do some flips to turn 25K into 250K or more.  You can fix and flip any type of property.  It does not need to be limited to single family homes.

Samok Dhawan · Answer

It is important that income is judiciously allocated between present and future spends.
 For the future, we should save and invest wisely as per  our risk 
appetite. For the current expenses, one should be well-budgeted  to be 
able to meet all expenses.

Ben Leybovich · Answer

If you have a good job tat pays well, why is it that you only have $25,000 to invest - serious question?

Joshua Chen · Answer

I wouldn't say this is the "best," but one possibility is using that 30k towards a down payment on an SFR that you well-analyzed to be a good deal, and then flipping it. Flipping is a great way to generate a quick burst of capital, especially for someone who already has capital to work with.

Jerry Padilla · Answer

@Mark Lord

It looks like your next step is getting ore-qualified........possibly on but and holds for cash flow?

Mark Lord · Answer

Thanks for the input!

Eventually I'd like to get into multi-family homes (apartment complexes / condo), commercial and land development. Obviously that's a ways away.

So it looks like my best bet is to get one or two rental properties to start, continue saving any cash from those properties and continue acquiring additional properties?

I figured that was the way to start.

Mehran K. · Answer

I'm a buy & hold investor and I would use the funds as down payment on property or two in good cash-flowing markets. It all depends on what type of investing you're looking to do though, buy & hold may not be your cup of tea!

Any additional cash flow could be added to what you're already saving on a monthly basis. Each property will help you snowball into saving more funds for future properties faster.