What would you do in my shoes?
122 Replies
AP Horvath
posted 11 months ago
If you had a few hundred thousand in cash, ready to invest in RE -- what would your RE investment strategy be?
Spread it around? land, multifamily, SFR, commercial or simply concentrate on one specific type of RE investment?
How much debt/leverage would you take on? And how would you prevent a downside scenario?
Context: I am married. Zero debt other than personal residence. Married with 4 young kids. Make money in tech.
Michael Magno
Real Estate Agent from Wadsworth, OH
replied 11 months ago
Depends on the market you want to invest in, and what are goals? Appreciation? Cash Flow?
In my market (Cleveland Ohio), you could do a lot of damage with $200k cash plus taking on some leverage of non owner occupant financing.
It really boils down to what you want your $ to do for you.
AP Horvath
replied 11 months ago
@Michael Magno , prob more on the appreciation side vs cash in my pocket. When you say a lot of damage -- what do you mean specifically?
Remington Lyman
Real Estate Agent from Columbus, OH
replied 11 months ago
@AP Horvath Buy multifamily in Columbus, Ohio. I am trying to get a monopoly.
If you want appreciation Columbus, Ohio is the market for you. https://fred.stlouisfed.org/series/ATNHPIUS18140Q
Mary M.
Rental Property Investor from Portland OR
replied 11 months ago
Find a commercial agent to help you and buy class B multi family. That has done well for me and many others
NaDean Bowles
Investor from Little Rock, AR
replied 11 months ago
Leverage it as down payments for commercial property.
AP Horvath
replied 11 months ago
Thanks @Mary M. --- what did you like about that best? Why that vs commercial?
AP Horvath
replied 11 months ago
@NaDean Bowles -- what kind?
Laura George
Investor from Pekin, Indiana
replied 11 months ago
I love cash flow!!! To us equity is a bonus!!
NaDean Bowles
Investor from Little Rock, AR
replied 11 months ago
@AP Horvath Storage space (build it yourself), office building, or possibly apartment buildings.
I also thought about note investing. That's a big longer for your return but GREAT returns.
Michael King
Rental Property Investor from St. Louis, MO
replied 11 months ago
As others have said, leverage. Use it to get loans to buy multifamily and repeat. At least that's what I would do. Good question @AP Horvath , as you have just put me in touch with my inner self. I've been pondering my next move, now I know what it is. 17 posts and you've solved a dilemma I was in! Thanks!
Mary M.
Rental Property Investor from Portland OR
replied 11 months ago
Originally posted by @AP Horvath :Thanks @Mary Mitchell --- what did you like about that best? Why that vs commercial?
Commercial is great until you have a vacancy. Then it can take years to fill it. Its just not as stable as MF.
Steve K.
from Honolulu, HI
replied 11 months ago
invest in syndications...
NaDean Bowles
Investor from Little Rock, AR
replied 11 months ago
@ap
@AP Horvath You also have enough to do private lending.
Jai Reddy
from Edmond, OK
replied 11 months ago
In order of my investing desire (cash flow first, then appreciation):
Class B Multifamily with a solid operation team.
Because I want to own the asset, otherwise I would invest with a proven Multifamily syndicate. With depreciation, I like tax free/deferred income.
Class B retail strip center, preferably a high-visibility hard corner. Business Tenants like visibility. With depreciation, I like tax free/deferred income.
Land in the path of development , preferably nice sized corner parcels at major intersections, one which has to be on the way of future commuters going to work.
Ocean facing property in either California or Florida, to short-term lease and then retire in and sell to other rich people from all over the world.
Now, tell us how you made money in tech? Stock grants?
Michael Noto
Real Estate Agent from Southington, CT
replied 11 months ago
@AP Horvath What would I do? Be careful of anyone sliding into your BP DMs with nefarious intentions now that everyone knows you have some coin.
Matt Nusbaum
Rental Property Investor from Annapolis, MD
replied 11 months ago
@AP Horvath what are your end goals? This will help guide you with your strategy? Also, how much time do you have or are you willing to commit? What areas interests you? There a million ways to skin the cat with real estate investing. Personally, I would look at commercial investing. If you have the time (and desire) dive in and look for deals you can own yourself or partner with someone else who is experienced and can get you into larger deals. If you don’t have the time and desire then I would look to spread the money around into a few deals as a limited partner.
Dennis M.
Rental Property Investor from Erie, pa
replied 11 months ago
i would buy half a dozen houses free and clear then offer owner financing at 9.9% on them with A mortgage and collect checks without tenants toilets or trash to deal
With .
Dennis M.
Rental Property Investor from Erie, pa
replied 11 months ago
Buy them for 10-15k and sell at 35-45k on terms
Robert Ellis
Real Estate Agent from Columbus, OH
replied 11 months ago
Originally posted by @Dennis M. :i would buy half a dozen houses free and clear then offer owner financing at 9.9% on them with A mortgage and collect checks without tenants toilets or trash to deal
With .
Interesting, what's your experience in doing deals like this?
Dennis M.
Rental Property Investor from Erie, pa
replied 11 months ago
Originally posted by @Robert Ellis :Originally posted by @Dennis M.:i would buy half a dozen houses free and clear then offer owner financing at 9.9% on them with A mortgage and collect checks without tenants toilets or trash to deal
With .
Interesting, what's your experience in doing deals like this?
Very positive to say the least
Randall Weatherall
Real Estate Agent from Memphis, TN
replied 11 months ago
I'm biased since I buy and sell multi-family properties, but as long as you are fine with slightly lower cashflow in exchange for less headache and time spent focusing on the property (and with 4 kids, a wife and what sounds like a busy job), class B/+ apartments in path-of-progress areas in growing cities is one option. You get the cashflow, depending on the city; you get the potential for timely appreciation, (but don't bet on it), and you get stable, able tenants paying market rent and generally leaving the units in decent shape.
A few hundred thousand can get you around 20-30 decent doors in some solid markets and you'll need some reserves for emergencies unless you can save up a ton, quickly, to cover it (not recommended, though). All under one roof, figuratively, and easier to manage so you can ask for some deep discounts from PM companies.
Tom Ott
Equity Raiser and Turnkey Provider from Cleveland, OH
replied 11 months ago
Originally posted by @AP Horvath :If you had a few hundred thousand in cash, ready to invest in RE -- what would your RE investment strategy be?
Spread it around? land, multifamily, SFR, commercial or simply concentrate on one specific type of RE investment?
How much debt/leverage would you take on? And how would you prevent a downside scenario?
Context: I am married. Zero debt other than personal residence. Married with 4 young kids. Make money in tech.
Multiple SFRs in the Cleveland suburbs where every property hits the 1% rule without trying.
Blake Dailey
Rental Property Investor from Panama City, FL
replied 11 months ago
@AP Horvath I would buy as many cash flowing properties as I could by safely leveraging them 70-80%. I do a mix of short and long term rentals for a balance of increased cash flow and stability in an appreciating market.
I would also consider lending that money out for someone else to do the heavy lifting on solid deals and make a healthy return. Or partner up. You could learn the process while making profits.
Manny Cirino
Real Estate Agent from Winter haven, FL
replied 11 months ago
If I had a few hundred thousand I would spread it out between a few NNN properties like Dollar General, CVS or Walgreens in hot markets like Orlando, Miami, Las Vegas, NYC etc... and a solid B class multifamily property with a proven track record or standing the test of time. That's a safer bet but you can always go the value add route if you want a long term growth.