100k to invest, where would you start?

Question

Hello all! I have 100-150k to invest. Im in the military and own a home in Seattle area with 50% equity on a 450k house plus I am selling my house in South America that I expect to net 150k or so. I also have access to VA loan if need be and have decent credit ~700. I am currently stationed in San Antonio and this market looks like it would cash flow on a rental. I am currently thinking about buying 3-5 rental houses in decent neighborhoods throughout the midwest or texas. My main goal is cash flow and appreciation. I am 42 yo and make 100k + a yr in the medical side of the military. How would you guys manage my situation? Thanks!

Jonathan R. · Answer

I like the way Account Closed thinks for sure. The whole Grant Cardone 10X thing is certainly a fun way to think... but perhaps you should get your feet wet on at least one or two of your sfr deals you mentioned initially. The Midwest and San Antonio are excellent places to invest. I see no reason you can't achieve greater than the 1% rule in those areas. If it were me, I would target my first single family home in a B-C area for less than 50k and rehab it for roughly 10k and get it rented out. Personally, I like a C area and rent it through section 8 housing so you know your rent will be there every month. I have a 2 bedroom 1 bath home all in after rehab for 32k that rents for $675 a month, perhaps a similar home in San Antonio would be 10k more but I bet the rent is a little higher there too. Anyway, hit a nice double or triple on your first deal. Perhaps if you really want to get comfortable, buy a house that needs a nice renovation on your second deal, a full gut even, I think that would be fun and then you won't be scared of much of anything. And then 10X it baby!!!! Good luck.

Account Closed · Answer

@Jerry Lundergard I would get a HELOC on the Seattle home and combine that $200k with the saved up $150k and put 25% down on a $1.4M apartment complex in your local area. The bigger the better in my opinion. One roof, one electrical system, one plumbing system etc.

Jonathan R. · Answer

I would reach out to wholesalers and see what they have. Most of their stuff is not on the MLS and well under market value as they know they need to make investors money. A good start is the "We Buy Ugly Houses" guys (otherwise known as HomeVestors). They are in most inexpensive markets. I bought one from them and it has been a cash cow. Many realtors don't know how to find investment properties that are not on the mls. I would do a Google search for wholesalers in San Antonio and see what you can find out. You can also do an mls search and see some stuff that is out there that is in your range but perhaps not the best deal and then drive for dollars and see if you can see some signs in the yard of people trying to do a for sale by owner. I know on the deal I bought they had a sign in the yard before deciding to wholesale the property; I could have gotten the property even cheaper had I seen the sign and had the courage to make a phone call. You can also search Home Path's website to see if you can find a good foreclosure deal, most of those deals aren't on the MLS. Or Hud Homestore. I would type in the links but they might get removed. Good luck.

Tom Ott · Answer

If you are going to leverage an 80% LTV loan on some properties, you can easily do that in the Midwest! Just make sure to do some research on the markets you go to and the property management company, if you use one!

Good luck!

Jerry Lundergard · Answer

The apartment idea is interesting. Ill have to look into that. I have renod 4 houses all in different cities in my life, all made money, mostly from dumb luck appreciation.  im currently in San Antonio and this is a new city for me and I have no contacts. Could anyone recomend someone in this area to help me locate distressed propertys or good deals? Is that something a good realtor should know? Mostly what they are showing me looks like it came off MLS. Any input appreciated. thanks