How would BP invest 1.5 million?
I am a new investor in St. Louis and that will have about 1.5 million in cash to put into real estate by the end of 2016 early 2017. My question for BP is how would you invest the cash?
We currently have 3 rental properties in the St. Louis area that we paid cash for. These are signal family homes. The first one we paid 79k and are getting $950/month. The second we paid 60k and we are currently flipping to add to our rentals and we should get about $950 for. Construction on that property is going to be about 30k in the end. The third we paid 86k and we are getting $1250/month. The two leases where signed in Q1 of 2016. We are using Worth-Clark to manage our rentals.
We are in the early stages of planning but have come up with some rough ideas on how to invest.
Plan 1
Take 1 million and invest in signal families for rentals. Take 300k to invest in flips using the 70% rule and sell for profit and then use the profits from the flips to invest into more rentals. Save 200k as working capital.
Plan 2
Take 1.3 million and invest in signal families for rentals. Leverage some of the rentals to buy flips and sell for profit and reinvest profits into more rentals. Save 200k as working capital.
We would like to pay dividends with the rental income so by doing the flips that would give us cash to reinvest into more rentals.
Thanks for the advice.