Hypothetical question for you all. What would you do if you came into $500,000 of investible money and wanted to put that into real estate? What does that look like to you in your opinion?
-Do you buy, say 5 $100k units and run them debt free?
-Do you buy, say 10 $100k units and put 50% down on each?
-Do you buy, say 20 $100k units and put 25% down on each?
-Do you simply just buy a holiday home? :)
Assuming the goal is passive income over time and property to be held in an LLC (so perhaps financing an issue?)
Can you qualify for a loan?
If possible, I would recommend a large multi family. While the cashflow could be relatively the same as having a free and clear property you wouldn't be building equity and missing a huge opportunity to build more wealth. Obviously the numbers matter but I prefer the cash+ equity as opposed to just cash.
My answer will assume little real estate experience. I would recommend buying a Multifamily building that needs some work all cash. Do the rehab with all cash and once done, refinance. This gives you the expertise while reducing your stress and risk. Once you have done the first either repeat the same process or start to scale with debt. But if you have the money stay in Multifamily, as you will eventually get there either way.
Let me know if you have any questions! I am happy to walk you through some deals as I am both a commercial agent and investor myself!
Why get into C clas or worser Real Estate.
Look into selling option premium. Cash secured puts and cover calls. Incorporate into Wheel Strategy.
Take $75,000 and make 30% easy money. OK, i admit not that easy. But highly doable.
Works with AAPL, AMD, C for example. You dont have to go near MEME stonks.
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