What would you do with $200k?

Member since 2022 · 2 posts · 3 votes

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Pay off any consumer debt I had. Risk-free, tax-free, hassle-free.

Then I'd repeat what earned me the $200k in the first place.

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
3y
Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Pay off any consumer debt I had. Risk-free, tax-free, hassle-free.
Then I'd repeat what earned me the $200k in the first place.
9 Reply
Dan Kennerson
Rental Property Investor · Sacramento, CA · Member since 2018 · 51 posts · 11 votes
3y
Personally, I'm looking for anything value-add, and looking at small multifamily and fixer SFRs for BRRR deals.
Given the current uncertainty, anything I buy I will have to be sure I'm buying at the right price. For me, that's more about DSR than comps, but comps are important too for the refi step, especially in the SFRs.
This is the perfect time to be able to buy right. As Buffet likes to say, when people are greedy, be fearful, when people are fearful, be greedy. None of that negates being smart.
1 Reply
Chris Davidson
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
@Austin Sisk pick up a property in a A location with lower leverage gaining cashflow and playing the appreciation game for 5+ years.
0 Reply
Matthew Kwan
Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
3y
Diversify that money into real estate, stocks, crypto but of course which asset class do you value more and willing to put more money towards it...that's a question for yourself.

@Albert Bui @Carlos Valencia
1 Reply
Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
3y
@Austin Sisk learn. I would start househacking for $15-20k and then I would do everything I can to learn. You also need to be very clear on your goals. What do you need more of? Cashflow or net worth?
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1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
I really think it depends on your personal financial situation. If I had non-mortgage debt, especially at a high interest rate, pay that off first. Assuming that doesn't apply, use some of that to buy a rental.
1 Reply
Lawrence Potts
Real Estate Agent · Member since 2018 · 459 posts · 414 votes
3y
That’s a great question! Idk if $200k is enough to build enough income for me to secure my future, but I think it would definitely help. I could do $50k down on 4 properties at $200k a piece and collect about $400-800/month in rental income, but idk if that’s the best way to scale.
Maybe I would spend $10k on marketing and start wholesaling and keep that $190k in reserves for proof of funds to show I can close on a property. Or maybe I’ll partner with someone doing value add flips and use that money toward lead generation and repairs? I could use the money to house hack a new multifamily and rinse and repeat. All very interesting 🤔
Realistically, it’d all towards real estate. But probably use it to buy a new primary house hack, build up a real estate business, into education, and reserves. It’s a lot of money!
0 Reply
Elijah ROberts
Member since 2021 · 16 posts · 5 votes
3y
Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Depends on your situation. You could buy a cashflow positive property, sit on it and wait to appreciate as it generates income for you. If you have the time to trade, you could put into strong dividend stocks like $MSFT and buy-write call options on them. Put it in TFSA and buy growth - income ETF portfolio and rebalance once every 6-12 months.
0 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Close on 4 duplexes in Killeen.
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
@Austin Sisk need more info. What is your current living situation? House hack a 4 plex
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Ryan Rock
Sacramento · Member since 2019 · 54 posts · 24 votes
3y
Quote from @Theresa Harris:

I really think it depends on your personal financial situation. If I had non-mortgage debt, especially at a high interest rate, pay that off first. Assuming that doesn't apply, use some of that to buy a rental.

Technically the OP wasn't asking for advice. He asked what YOU would do.
0 Reply
Ryan Rock
Sacramento · Member since 2019 · 54 posts · 24 votes
3y
Quote from @Elijah ROberts:

Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Depends on your situation. You could buy a cashflow positive property, sit on it and wait to appreciate as it generates income for you. If you have the time to trade, you could put into strong dividend stocks like $MSFT and buy-write call options on them. Put it in TFSA and buy growth - income ETF portfolio and rebalance once every 6-12 months.

But you know your situation. He asked what YOU would do, not what he should do. In my opinion this typeof question can be very helpful if people actually answer it, like the guy that said close on 4 duplexes in Killen. That doesn't mean the op is gonna do that, haha.
It boggles the mind that people can't seem to understand that.
0 Reply
Ryan Rock
Sacramento · Member since 2019 · 54 posts · 24 votes
3y
Quote from @Eliott Elias:

Close on 4 duplexes in Killeen.

I just looked there and I see a handful of them around 10th and E Veteran/s Memorial blvd for under 200. What is the draw for Killeen and what part of town is best?
0 Reply
Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
3y
Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

I agree with @Steve Vaughan pay off the debt if you have any then build on the skills that you have that made the $200,000. If this was a gift or inheritance, then use some of the money to gain more knowledge in a specific area looking to grow more. For example, if you wanted to be a wholesaler, go out buy a course/coach and learn how to do it better. That is the best way to grow it, the second best is to do something more actively (I.e. fix and flip, wholesale, BRRRR) etc.

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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Quote from @Ryan Rock:

Quote from @Eliott Elias:

Close on 4 duplexes in Killeen.

I just looked there and I see a handful of them around 10th and E Veteran/s Memorial blvd for under 200. What is the draw for Killeen and what part of town is best?

Largest military base on earth and its proximity to Austin.
2 Reply
Jared HottleBusiness Member
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
3y
BRRR method.
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Doug Spence
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
3y
@Austin Sisk I would wait and see what this real estate market does over the next 12 months. There will be lots of opportunities... Massive wealth is created by buying in recessionary times!!
0 Reply
Jordan Alexander
Member since 2022 · 106 posts · 39 votes
3y
Assuming you do not have any consumer debt, I would purchase as much rental properties as I could utilizing The Stack method with the $200k!
0 Reply
Ryan Rock
Sacramento · Member since 2019 · 54 posts · 24 votes
3y
Quote from @Doug Spence:

@Austin Sisk I would wait and see what this real estate market does over the next 12 months. There will be lots of opportunities... Massive wealth is created by buying in recessionary times!!

That worked really well for me in 2012-14. Made a alimony paying math teacher into a retire early guy living in Europe. I sold my last place last summer. I want to buy a property now but I like you think I should wait. I do get impatient though. I'm looking for markets that were relatively unaffected during the GR. Unfortunately it seems that good records were not kept by some municipalities going back that far, or are not available for some reason.
0 Reply
Elijah ROberts
Member since 2021 · 16 posts · 5 votes
3y
Quote from @Ryan Rock:

Quote from @Elijah ROberts:

Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Depends on your situation. You could buy a cashflow positive property, sit on it and wait to appreciate as it generates income for you. If you have the time to trade, you could put into strong dividend stocks like $MSFT and buy-write call options on them. Put it in TFSA and buy growth - income ETF portfolio and rebalance once every 6-12 months.

But you know your situation. He asked what YOU would do, not what he should do. In my opinion this typeof question can be very helpful if people actually answer it, like the guy that said close on 4 duplexes in Killen. That doesn't mean the op is gonna do that, haha.
It boggles the mind that people can't seem to understand that.

I guess alot of things boggle your mind! But if this is the case, then I'm not surprised you haven't provided the OP your response / ideas, other than jumping on other people's contributions as a comment police. But again, it's all about the mind! Thats what separates one human from another!

I'm sure anyone with a mind that doesn't get easily boggled would deduce from my commentary as to what I'd do.
2 Reply
Ryan Rock
Sacramento · Member since 2019 · 54 posts · 24 votes
3y
Quote from @Elijah ROberts:

Quote from @Ryan Rock:

Quote from @Elijah ROberts:

Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

Depends on your situation. You could buy a cashflow positive property, sit on it and wait to appreciate as it generates income for you. If you have the time to trade, you could put into strong dividend stocks like $MSFT and buy-write call options on them. Put it in TFSA and buy growth - income ETF portfolio and rebalance once every 6-12 months.

But you know your situation. He asked what YOU would do, not what he should do. In my opinion this typeof question can be very helpful if people actually answer it, like the guy that said close on 4 duplexes in Killen. That doesn't mean the op is gonna do that, haha.
It boggles the mind that people can't seem to understand that.

I guess alot of things boggle your mind! But if this is the case, then I'm not surprised you haven't provided the OP your response / ideas, other than jumping on other people's contributions as a comment police. But again, it's all about the mind! Thats what separates one human from another!

I'm sure anyone with a mind that doesn't get easily boggled would deduce from my commentary as to what I'd do.

touche! And you're right, my mind is easily boggled.
Here's my answer: If I only had that much liquid, I would buy an investment property East of Utah in a city that fared well during the great recession. I'm sitting in cash right looking for places to invest. I keep looking at deals that seem promising then find a reason not to move forward. I plan to keep looking until I find something that suits me. My business model is sfh rented by the room to students and maybe mf. Prime states of interest are Ohio and Texas.

I bought houses in Sacramento in 2006 and 7 that sold in 2011 for 1/3 of what I paid. I fear we are on the precipice of another big correction, but not half as bad as that. Then I keep thinking and overthinking that I must be wrong, because of job growth numbers and other positive signs for the economy.
I kicked *** by buying properties for cash (couldn't borrow conventional money because of recent short sales) in 2012(Sacramento and Tahoe), 2014 (Sacramento) and even 2021(San Diego). Sold the last one last summer.
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Reed Rickenbach
Real Estate Broker · Memphis, TN · Member since 2020 · 202 posts · 203 votes
3y
If you have limited real estate experience, high-yield savings accounts are paying 4%. That would be $667/mo.. not bad.
2 Reply
Jorge P.
Investor · New York, NY · Member since 2014 · 153 posts · 126 votes
3y
Quote from @Reed Rickenbach:

If you have limited real estate experience, high-yield savings accounts are paying 4%. That would be $667/mo.. not bad.
Great advise. Very subtle but good.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Quote from @Chris Davidson:

@Austin Sisk pick up a property in a A location with lower leverage gaining cashflow and playing the appreciation game for 5+ years.
A location means $1mil + likely, at least in most areas. $200k gets you basic leverage on it.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Quote from @Reed Rickenbach:

If you have limited real estate experience, high-yield savings accounts are paying 4%. That would be $667/mo.. not bad.
Closer to $420 after taxes, still not terrible though.
1 Reply

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