$165K CASH saved up, what would you do with it?

Real Estate Deal Analysis & Advice
9moFollow

$165K CASH saved up, what would you do with it?

Liam Talukdar
Rental Property Investor · Member since 2024 · 12 posts · 9 votes

Hey all experts,

I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 

6Reply
325 views

Most Popular Reply

Sasha Fukuda
Walpole, NH · Member since 2018 · 66 posts · 34 votes
9mo

You don't give many details, but I'll assume you don't have a family, don't have a house, want to stay in the area, and that there are small multi family apartments in the area. Given all these assumptions, I'd buy a triplex or a quad and live in one of the units. Maybe I'd even go small commercial instead (5 or 6 units). I'd also try to keep a pretty big emergency fund. 

2Reply
See this reply in the discussion

17 Replies

Jump to latestLatest
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    9mo

    Liam,

    Avoid ground up construction right now unless you are going to buy a piece of land in a state other than NY. There is a ton of inventory in other states like IN, OH, NC, FL, TN, MA, NH, VT, PA. You can pick up a Multifamily up to 4 units and with down payment and closing cost be under $60K on a $300K sale price.

    If you have $165K that allows you to pick up a few and have money left over for renovation if needed. There are a lot of properties that could use some TLC or a complete face lift and put you in a good ARV position. Then in 6 months do a cash out refinance a rates continue to drop and recoup your initial capital and some extra for the next DP.

    One of my investors in White Plaines, NY just closed on a great 3 unit in Indiana. He also had a place picked out in Dayton, OH but the rents and ARV in Indiana beat out the OH property! If you ever have any questions about certain states, cities, or REI in general feel free to reach out or send me an email!

    [email protected]727-637-4289
    1Reply
    • Liam Talukdar
      OP
      Rental Property Investor · Member since 2024 · 12 posts · 9 votes
      9mo
      Quote from @Jason Wray:

      Liam,

      Avoid ground up construction right now unless you are going to buy a piece of land in a state other than NY. There is a ton of inventory in other states like IN, OH, NC, FL, TN, MA, NH, VT, PA. You can pick up a Multifamily up to 4 units and with down payment and closing cost be under $60K on a $300K sale price.

      If you have $165K that allows you to pick up a few and have money left over for renovation if needed. There are a lot of properties that could use some TLC or a complete face lift and put you in a good ARV position. Then in 6 months do a cash out refinance a rates continue to drop and recoup your initial capital and some extra for the next DP.

      One of my investors in White Plaines, NY just closed on a great 3 unit in Indiana. He also had a place picked out in Dayton, OH but the rents and ARV in Indiana beat out the OH property! If you ever have any questions about certain states, cities, or REI in general feel free to reach out or send me an email!


       Thanks for your advice. 

      0Reply
  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    9mo

    We've been doing ground-up for many years and we lend to small builders and investors doing ground up. My advice would be to increase your level of difficulty gradually. You work up to the major leagues as there is a lot to learn. If you've not flipped before, start with a simple, basic, cosmetic flip, then progressively get more complex with it before finally moving to basic ground up. You don't want to jump right into the fire. Build up to it. Ground up is a different animal. 

    1Reply
  • Sasha Fukuda
    Walpole, NH · Member since 2018 · 66 posts · 34 votes
    9mo

    You don't give many details, but I'll assume you don't have a family, don't have a house, want to stay in the area, and that there are small multi family apartments in the area. Given all these assumptions, I'd buy a triplex or a quad and live in one of the units. Maybe I'd even go small commercial instead (5 or 6 units). I'd also try to keep a pretty big emergency fund. 

    2Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    9mo

    I always recommend my first time clients do a house hack. Buy in an area you would live as these areas will have good tenants and growth, doing owner occupied can buy as little as 5 to 10% down which leaves some money to do cosmetic value adds. Avoid cheap out of state areas, these often are just on paper returns and turn into complete money pits. 

    1Reply
    • Liam Talukdar
      OP
      Rental Property Investor · Member since 2024 · 12 posts · 9 votes
      9mo
      Quote from @Henry Lazerow:

      I always recommend my first time clients do a house hack. Buy in an area you would live as these areas will have good tenants and growth, doing owner occupied can buy as little as 5 to 10% down which leaves some money to do cosmetic value adds. Avoid cheap out of state areas, these often are just on paper returns and turn into complete money pits. 


       Thank you so much!

      1Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    9mo

    House hack first in the best property you can afford.

    if there's any excess cash, see if you could buy another property such as a 2-4 unit. Otherwise, save that money and do another house hack a year later

    [email protected]
    Brick House CPAs53 Reviews
    WebsiteView Page
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    9mo
    Quote from @Liam Talukdar:

    Hey all experts,

    I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 

    Hey Liam, welcome to BP! With $165K in cash, you have some flexibility, but ground-up construction can get tricky since costs for land, permits, and materials can quickly add up, so you’d likely need financing on top of that to make it work. Another approach that’s simpler for getting started is looking at cash-flowing single-family homes or small multifamily properties in markets where your money goes further. For example, in Columbus, Ohio, you can find properties in the $120–180K range that hit the 1% rule, generate positive cash flow from day one, and have strong long-term appreciation potential thanks to population growth, job growth, and big companies like Intel, Amazon, Google, and Honda expanding there. This way, you can start earning income immediately while learning the market before tackling something more complex like new construction. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    9mo

    I'd buy a primary home in an area where you want to stay for a while with an eye on ease of resale or rental in the future which generally comes down to school district. My strategy would be 50% on the property and the other 50% low cost TSM index fund for diversification, liquidity and truly passive income. 

    1Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 979 posts · 642 votes
    9mo

    Hi @Liam Talukdar, If I were in your shoes, I’d first clarify my return goal and risk tolerance, then consider using that capital as a strong down payment for new construction with a construction loan, or deploy it into value-add or small multifamily deals where the risk is lower and cash flow is quicker. Ground-up can work, but it’s capital-intensive and very market-specific, especially in upstate NY.

    Spark Rental Co-Investing Club577 Reviews
    WebsiteView Page
    1Reply
  • Rodney Sums
    Laveen, AZ · Member since 2016 · 584 posts · 528 votes
    9mo
    Quote from @Liam Talukdar:

    Hey all experts,

    I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 

    An important part you might share to get the best answers is explain what your investment and lifestyle goals are.  What people might tell a 22 year old with a 165k planning to work a few decades will be different than someone near retirement age with the same 165k for example. You might share what choices you have regarding where you can live, what your family situation is, long and short term goals etc...
    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    9mo
    Quote from @Liam Talukdar:

    Hey all experts,

    I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


     I would flip first and do like 30-40 homes. You can honestly make more money doing that. Why don't you look into buffalo NY since it is so close to you. 

    If you look OOS then look at my market. I think its better than all the others.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 530 Reviews
    WebsiteView Page
    0Reply
    • Liam Talukdar
      OP
      Rental Property Investor · Member since 2024 · 12 posts · 9 votes
      9mo
      Quote from @Alfath Ahmed:
      Quote from @Liam Talukdar:

      Hey all experts,

      I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


       I would flip first and do like 30-40 homes. You can honestly make more money doing that. Why don't you look into buffalo NY since it is so close to you. 

      If you look OOS then look at my market. I think its better than all the others.


       I will look into that. Thanks. 

      0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    9mo
    Quote from @Liam Talukdar:

    Hey all experts,

    I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


    I would start researching different markets, speak with the local agents and decide on 2-3 markets, finally, which can provide you with great cash flow and appreciation

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    1Reply
    • Liam Talukdar
      OP
      Rental Property Investor · Member since 2024 · 12 posts · 9 votes
      9mo
      Quote from @Marc Rice:
      Quote from @Liam Talukdar:

      Hey all experts,

      I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


      I would start researching different markets, speak with the local agents and decide on 2-3 markets, finally, which can provide you with great cash flow and appreciation


       Thank you.

      0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    9mo
    Quote from @Liam Talukdar:

    Hey all experts,

    I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


     My first deal was a house hack.

    That is enought money for groud-up contruction if you get the right contruction loan but if you have never done that before then I would recommend doing something different until you have gained experience

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
    • Liam Talukdar
      OP
      Rental Property Investor · Member since 2024 · 12 posts · 9 votes
      9mo
      Quote from @Remington Lyman:
      Quote from @Liam Talukdar:

      Hey all experts,

      I live in upstate NY. I have saved up $165K in cash. What would you do if you were in my shoes?  Is that enough to start ground-up construction? Any suggestion would be highly appreciated. 


       My first deal was a house hack.

      That is enought money for groud-up contruction if you get the right contruction loan but if you have never done that before then I would recommend doing something different until you have gained experience


       Thank you for your advice. 

      0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free