What would you do with 80k?

Question

Thanks for reading my post. My wife and I are finally in a position to cash out on our equity and continue on to the next investment opportunity. We basically did a live in flip without knowing we we're doing it. We can walk away with 80k tax free once we sell our home, which we plan on doing this summer.

With that being said, what's some advice you could give? We really want to start getting passive income rolling in. My initial thought was to buy a fix and flip, as well as a rental or two. Just don't know what my best option would be to get the snowball bigger.

Marisa R. · Answer

Buy 2 properties in Detroit at 40,000 each renting for $850 each pm, refinance in 12 months, many areas are now rising

Dont listen to me, do your own research

Bagley.... just one hot area

Grant Rothenburger · Answer

Me personally, if real estate investing was the only focus, I'd flip a few more houses houses and save more cash. When I had enough cash to purchase a good value add 20+ unit, I'd do that.

Yannik Cudjoe-Virgil · Answer

@Nick H. I would work backwards from you long term goal. If your goal is passive income then you would need cash to buy real estate. Maybe you can use a portion for a rental downpayment then the other on a flip. Use the proceeds from the flip to buy another rental and keep going from there. But unless you have a second source of cash to put into real estate, you are going to have to do some sort of active income (i.e. flips or wholesale) to generate short term capital to deploy in rentals. Hope this helps!

Marisa R. · Answer

Purchased 10 distressed, foreclosure properties, rehabbed last 2 now got them cashflowing

Check out my thread

‘Detroit the come back kid’

This will give you an idea on what I am doing, where and what to buy

Jaron Walling · Answer

@Nick H. I would continue doing what you're good at! If you're handy and good at renovations buy another live in flip. If you don't have kids and life obligations the construction site mess isn't that bad. If you find the right the deal you could rent it out and still cash flow.

Nick H. · Answer

Never considered Detroit. Are you doing well there?

Nick H. · Answer

This aligns with what I think I want to do. Thanks for the reply!

Nick H. · Answer

The 80k would strictly be used to maximize real estate purchases. Perhaps a live in flip, or strictly rentals. Just curious what folks would do in a similar situation.

Heath Ryans · Answer

@Nick H. What are you plans once you sell your home? If you plan to but another, its going to cut into that 80k.

Have you considered getting a HELOC?

The only way to get passive income would be buying rentals. If you purchased a value add multifamily property, you could have both passive income, as well as make extra cash on the refi.

What would you do with 80k?

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