Trying to decide next move

5 Replies

I bought an apartment for about 150k in Staten Island NYC about 4-5 years ago that I spent very little money renovating myself and now thru appreciation is worth about 250k mortgage free. I am single and have a steady 9-5 job earning me about 3k a week after taxes and also have about another 40k in savings at the moment. I am trying to figure out my next move and am very undecided, but my goal is financial independence.

So with about $300k total in funds, I am trying to decide between buying long term rental properties out of state, buying another property to renovate, or buying a property to rent short term (airbnb). I have a lot of home repair skills/renovation experience and am confident I could be successful doing another flip, however I'm very intrigued by the possibility of passive income thru rentals (fully acknowledging the potential headaches).

What would you wise people recommend?

@Nicholas Carlson I would continue to flip and compound the cash so you can invest in larger commercial and multifamily properties down the road. It will take you a long time to scale with smaller rental properties. 

If you build your cash to $1miliion or more over the next couple of years you could buy one property that would replace your income. It would take 20 or more smaller rental properties to do the same and would probably take ten years or longer.

Originally posted by @Nicholas Carlson :

@Greg Dickerson

Is $1million realistic?

Yes absolutely. If you earn 25-30% on your capital flipping it can be done in a couple years while working your job.

You can actually do it quicker wholesaling but you would need to focus on it full time.

@Nicholas Carlson  

Keep in mind that flipping earns you ordinary income taxed at your W-2 rate, which sounds like for you is pretty high. I'd look into buy and hold out of state or airbnb - depending on your knowledge and interest in one area or the other. If not ready, continue educating yourself. Also since you're single, consider looking into BRRR strategy. Might be perfect for your case. Buy residential multi fixer-upper and bring it to life and then rent it out.