Where to Invest with $50K in cash?

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Where to Invest with $50K in cash?

Amit Desai
Member since 2020 · 56 posts · 22 votes

Hello all BP experts,

I have $50K cash which I want to use into either STR or LTR wherever number will work. I already have 1 STR which is doing great but not sure about which way I should go next?

Expecting real guidance here if possible. 

OR you can suggest how and where to divide this $50K?

Thank you in advance for your suggestion and guidance.

Thanks

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Most Popular Reply

Jerry Lucker
Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
4y

@Amit Desai

If quick cash and above average profit margins attract your interest you might want to do what I’ve done for 20 years.

Buy a mobile home in a park, pretty it up, and flip it. I’ve done this many times with $50K or less. Profit margins anywhere from 50% to 200%. This just can’t be done with real estate. Mobiles in parks are not real estate, they’re personal property.

Don’t get me wrong, I love real estate. I’ve been able to buy a nice portfolio with the cash I’ve made flipping mobile homes :)

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  • Gabriela Rezende
    Real Estate Broker · CO · Member since 2021 · 13 posts · 16 votes
    4y

    Hi Amit, I recently purchased a STR in Westminster CO based on the great occupancy %, ADR & predicted revenue & im already profiting. It was a $560k home with a great loan from my preferred lender between cash to close and furnishing I had the property up and running for around 48k, so Colorado Short Term Rental might be a great option for you. Feel free to reach out if you'd like to chat more

    3Reply
  • Joshua Strickland
    Investor · Flowery Branch, GA · Member since 2019 · 413 posts · 412 votes
    4y

    Galveston or Myrtle Beach would work for STR

    1Reply
  • Quinn OlivarezBusiness Member
    Real Estate Agent · Houston, TX · Member since 2021 · 115 posts · 131 votes
    4y

    Galveston TX is a great market for this budget, if you’d ever like to discuss options don’t hesitate to reach out! 

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    0Reply
  • Amit Desai
    OP
    Member since 2020 · 56 posts · 22 votes
    4y

    Thank you all for your response. 

    I have been through the search online for these location specially Galveston and Myrtal beach.

    Myrtal beach looks good but never heard of Westminister, CO before. However, Isn't Galveston is just below Huston which often comes under Hurricane Radar?

    Thanks

    0Reply
  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    4y

    I invest and work with clients throughout Galveston. Its a great place to invest and can be done with remote managing no problem. Message anytime! We own multiple STRs and manage on the island

    0Reply
  • Seth WilcockBusiness Member
    Lender · Nashville, IN · Member since 2016 · 139 posts · 84 votes
    4y

    @Amit Desai - I recommend looking into a long term rental in Indianapolis, IN. It's been a fantastic market for me. Very landlord friendly, low vacancy, lot's of population & job growth, good rent to price ratios, 20% avg appreciation rates on 2021 and projecting 20% again 2022. Let me know if you have any questions on the market/area.

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    0Reply
  • Amit Desai
    OP
    Member since 2020 · 56 posts · 22 votes
    4y

    Thank you Karl and Seth. Will definately look into it and reach out to you.

    0Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y

    @Amit Desai I'm having success investing in my market with monthly rentals. It gets around my city's STR laws and I still get all the crazy Austin, TX appreciation!

    0Reply
  • Ed Tamayo
    Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
    4y

    If you already have an STR, I would say you go with another STR. I see that many people are suggesting specific places but I strongly suggest you try to keep it local. It is entirely possible to manage a STR remotely but its flat out more expensive.

    1Reply
  • Jerry Lucker
    Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
    4y

    @Amit Desai

    If quick cash and above average profit margins attract your interest you might want to do what I’ve done for 20 years.

    Buy a mobile home in a park, pretty it up, and flip it. I’ve done this many times with $50K or less. Profit margins anywhere from 50% to 200%. This just can’t be done with real estate. Mobiles in parks are not real estate, they’re personal property.

    Don’t get me wrong, I love real estate. I’ve been able to buy a nice portfolio with the cash I’ve made flipping mobile homes :)

    6Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    4y

    Hi Amit, I started my real estate journey here in Indianapolis. I would love to help and share my experiences if you're interested.

    1Reply
  • Amit Desai
    OP
    Member since 2020 · 56 posts · 22 votes
    4y

    Thank you Conner, Ed, Jerry and Nick. Really appreciate your responses.

    @Jerry Lucker I have sent you messg.

    @Nick Giulioni Sure lets have chat to get more detail as I am exploring all options here.

    @Conner Olsen Austin is little expensive now with property tax and home price are increasing, therefore, for now Austin is little out of scope unless I move there.

    @Ed Mayo: you are right but I live in NJ and does not make sense to invest here with high property taxes. Otherwise, local and nearest are best bet always.

    0Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y

    @Amit Desai you're right Austin is expensive right now. The suburbs are more affordable and rapidly appreciating at a faster pace than Austin itself this past year. Austin might not be the right market for you, but you could do the MTR strategy in a less-expensive market in states like Indiana, Ohio, or Florida.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Originally posted by @Amit Desai:

    Hello all BP experts,

    I have $50K cash which I want to use into either STR or LTR wherever number will work. I already have 1 STR which is doing great but not sure about which way I should go next?

    Expecting real guidance here if possible. 

    OR you can suggest how and where to divide this $50K?

    Thank you in advance for your suggestion and guidance.

    Thanks

     I would recommend using the $50k for a down payment on a single-family home in a C+ neighborhood in Columbus, Ohio. I know some people that are doing that then turning them into STRs. They hit the 2% rule and are able to buy a $120k turnkey single family with low maintenance. 

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    1Reply
  • Nathan W.
    Austin, TX · Member since 2013 · 153 posts · 104 votes
    4y

    @Conner Olsen Are you signing a lease for those monthly rentals? I'm in Austin and I've been considering converting one of my long term rentals to a monthly short term rental here but I haven't figured out that piece yet. 

    0Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y

    @Nathan W. I don't have leases signed because I go through Airbnb. I have rented monthly outside of Airbnb and in those cases I write up a monthly lease. 

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Don't know your job/income situation, but if you can, take that $50k and divide it in half. Use $25 for 2 down payments on STRs. Just pick the hottest, cheapest area and go for it....

    3Reply
  • Gloria N GearBusiness Member
    Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
    4y

    Hi Amit!  Would love to give you info on the Indianapolis area 

    0Reply
  • Amit Desai
    OP
    Member since 2020 · 56 posts · 22 votes
    4y

    Thanks Bruce and Gloria for your responses.

    @Bruce Woodruff Yes I do have a full time job looking for passive income on side. The question is where can I find two units with $25K downpayment which generate good CoC. In all area where STR is great having high prices.IF oyu have anything in your mind then can you please share?

    @Gloria N Gear Sure will reach out to you.

    Thanks

    0Reply
  • Ricardo Ramirez
    Flipper/Rehabber · Middletown, NY · Member since 2022 · 31 posts · 6 votes
    4y

    @Gabriela Rezende what does str or ltr stand for of you don't mind me asking

    0Reply
  • Nathan W.
    Austin, TX · Member since 2013 · 153 posts · 104 votes
    4y

    @Ricardo Ramirez


    STR = Short Term Rental
    LTR = Long Term Rental 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Originally posted by @Amit Desai:

    @Bruce Woodruff Yes I do have a full time job looking for passive income on side. The question is where can I find two units with $25K downpayment which generate good CoC. In all area where STR is great having high prices.IF oyu have anything in your mind then can you please share?

    There are too many variables and moving parts, not to mention the hundreds of areas around this country that are good for invest in STRs, for me to suggest areas. I don't know anything about your preferences...

    I'd suggest trying searches on this very forum to find areas that you may be interested in. This is discussed weekly.

    0Reply
  • Patrick Bavaro
    Fort Lauderdale, FL · Member since 2018 · 289 posts · 342 votes
    4y

    @Amit Desai depends on which market you are looking to invest in. Right now, my focus is on Cape Coral. Growth is 7% YoY and I just bought a new build 4/3 SFH for $265k all in (construction start to finish) with only 10% down. Average post construction appraisal is $377k for this model and rent is $2300/mo. Slam dunk deal if you ask me! Feel free to reach out. Good luck!

    0Reply
  • Amit Desai
    OP
    Member since 2020 · 56 posts · 22 votes
    4y

    Thank you Patrick for your response.

    Will definately reach out to you as well.

    Thanks

    0Reply
  • Ashley Pinnell
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 21 posts · 26 votes
    4y

    Cincinnati is a great city and you can easily hit the 1% rule if not better. 50k down payment will get you a turnkey SFH that will cashflow as a long term rental, and most of the zip codes here are growing in the double digits appreciation-wise.

    0Reply
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