Currently just have a SFH rental. I have about 70K free cash, and am pondering what to do next. Part of me wants another SFH paid in cash and just collect debt free rent, but another part wants to keep cash available for a possible flip. Any advice from people who have been there before? Thanks!
@Bradford Myatt If you do not like debt, then it is a no-brainer. Use the money for a flip. You'll never be able to match the return with buy-and-holds unless you leverage (i.e, get a mortgage).
Either check into crowdfunding for solid, secure returns of 8% to 12% depending on the project or partner/JV with someone in a better market to buy & flip in. You will find a ton of those opportunities there. Oneida and Utica are probably decent rental markets but you won't see any appreciation. Other thought is to find a decent 3/2 or bigger.....buy, light rehab, rent as shared housing and sell it off to passive investors. That's what we do and the returns are anywhere from 20% to over 100% per deal....just depends on what we bought and how well it rented up. Happy Investing!
It all depends on your goals and what you want to do in the future. The biggest question is how can you use that $70,000 to get some momentum towards your goals?
If you want more SFH's and like being a landlord of that type of investment I like the idea to buy a house free and clear as long as you can get your equity back out with a line of credit or refinance.
A fix and flip would go good too if you have the time to manage it and good contractors to do the work.
There are also passive investments if you want to keep your day job and make a solid return on your money without much time investment from you.
Bottom line, there are hundred different types of investments you can get into with the money. I would get clear on where you want to go long term and the path will become obvious.
Hope that helps!
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