The Age Old $100k Best Strategy Question, with my particulars

2 Replies

Hi Folks,

My girlfriend is moving out of her house and selling it. She expects to get about $100k from her portion of the sale. What's the best strategy to use those funds to build our RE holdings/business?

I know this is one of the most asked questions on BP, and I have, and will continue to read through the old threads, but every situation is a little different, so any thoughts/feedback would be much appreciated. 

I'm trying to decide between hard money to buy something for cash and do a flip, or maybe find a seller finance deal on a small multi and put the $100k down, and do the house hacking approach, or I'm really fond of the BRRR strategy, but so far I haven't navigated the refinance/pull your money back out portion of that strategy. And I'm sure there are a million other approaches that I'm overlooking.

A few of our particulars:

- While she is selling her house we will live together in my house (which I own free and clear), but it is a small house in the country, and between the two of use we have a lot of kids, so ideally she/we will buy another house or multi in town. Or we may build an addition on my house.

- Average 3/2 houses in our area cost about $350k. Getting much cashflow around here is challenging, but I've managed to do it so far.  I don't think we would consider out of state investing right now. I know that's a big hot topic, but I would want to travel to wherever we would be investing, and I don't think we have the bandwidth to do that right now.

- I've done a few significant buy, renovate and hold projects that are producing good cashflow, but I'm carrying a fair bit of debt, so not in a great conventional loan position, though I do have a steady W-2 job. My girlfriend has had her current job for less than a year, so she doesn't have a lot of loan strength either. I don't think I have enough equity to refinance and pull money out yet, plus, to refi I think you have to do a conventional loan qualification?

- We would like to build the business, not just focus on the next deal.

 What would you do? Thanks in advance for any and all comments/suggestions!


I am a bit confused.  You first stated that you owned your house free and clear.  Then you spoke about refinancing and not having enough equity.

Hi @Account Closed , I own the house that I live in free and clear, but it is a family property (other family owners) so I can't use that one as collateral or pull money out of that property. 

I am part owner of three other properties that are cashflow rental properties, those are the ones I was referring to in regard to equity.  

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