Investing now with $200k

[Kirk Roberts]

So, I'm debating whether to sell my only an investment property that would net me about $200k after fees.

It's currently a mid term rental in NH. I live in NH but was thinking of possibly buying 3 STRs or LTRs in the Myrtle Beach area or another vacation beach spot (so if I visit!). I figured I could buy 3 properties around the $300k meeting the 20% down and would expand my portfolio tripling lol.

Or go larger and buy a multi family but harder to find near me or possibly in other areas.

Looking for feedback? Appreciate everyone on here love this forum.

Kirk

[Nathan Gesner]

Quote from @Kirk Roberts:

I'm a big proponent of leveraging, but it helps to have a goal in mind. Having a goal will help you determine if a change is moving you closer to that goal or not. Until then, growth is a good option!

Read a few books on real estate investing to learn the power of leverage. I like the Unofficial Guide to Real Estate Investing. Here's a very basic explanation to get your juices flowing:

Assume a house costs $200,000 and rents for $1,500. The market appreciates 3% per year.

Pay cash for one house and rent it for $1,500. After five years you'll have earned $90,000 in rent income and gained $34,000 in appreciation.

Buy four houses with $50,000 down on each. Mortgage payment is $1,000 on each house, so you're essentially earning $500 per house or $2,000 a month. After five years you'll have earned $120,000 in rent income and gained $136,000 in appreciation. You've earned $132,000 more by splitting your money and leveraging it.