Hilo, HI · Member since 2014 · 30 posts · 10 votes
27 year old from Hawaii. I recently bought my first cashflow property in Orlando, Florida. I own the property free and clear. It cashflows $700 a month. Honestly, I dont know what to do with this money that is coming in. I do know that I want to re-invest the money coming in back into real estate, but I don't know exactly know what to invest it into. Should I just save up the money and invest it later? If someone could help me with this then that would be great! How can I use this money being made and have it grow for me? Book: "The richest man in Babylon" style! Any advice will be greatly appreciated!
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
Mana,
what you should do is put some money aside for emergencies, new roof, furnace, hot water heater, you never know when something will go, this way you can pay for it no problem. if you wanted to invest in another property, you could use the equity you have in that property and use it to purchase another house, by taking out a HELOC.
Lender · Los Angeles, CA · Member since 2015 · 800 posts · 229 votes
10y
I would definitely leverage your property @Mana Silva. Yes you are getting $700 a month cash-flow, which is awesome, but you also have $110,000 in equity that is making you no money at all. If you leverage it with a HELOC or a conventional loan or even a hard money loan you can utilize that money to buy another property and then another and then another. Rinse and Repeat.
The savvy investors uses other people's money, combined with a little of their own, to create an entire portfolio of properties that are cash flowing and appreciating in value.
@Account Closed if those numbers were guaranteed I would be in HI tomorrow:)
My rent growth and appreciation rate analysis goes back to the 70's. No guarantee but about as close as you can get to it. Need a pickup at the airport?
If you want to save it, put it in your Financial Freedom Account and earmark it only for investments. You can put a percent of the funds into a cap ex account for any capital repairs you have on the property