What to do with 35k?

13 Replies

I live in southern California, have $35k saved, and zero debt. I am currently renting a room. My current thoughts are to house hack and rent out the rooms in a single family, get a duplex and house hack and rent out the other unit, or to purchase a inexpensive house in another state and use that to begin my rental portfolio. Please let me know what your recommendations as to what I should do with my $35k and why? Thank you in advance.

Hey Nick, I'm a Texas guy. Vacationing in Seal Beach right now tho. So right down the road from you!

My advice would be the duplex route. Have your researched market this? Can you get duplex in your area with a $30k down payment?


I believe the best answer for that is finding out what works for you. Depending on your situation and your goals,that should give you the answer. Do you wanna be a land lord, do you wanna rehab, do you wanna etc... and how does that fit into your everyday life/goals. Best of luck, Happy holiday!


I’ve found (through making quick decisions in the past) that having cash is huge. Investing your money in real estate can have great pay out, if done wisely. I will say that my personal opinion would be to point you toward a 2-4 unit to start out. (Banks see these as an investment property vs. single family and will count 75% of the rent toward the mortgage which helps for further investing as your DTI can grow with investments.) it does depend on your long term and short term goals. Again, don’t rush yourself. Best of luck!

My original intention was a duplex. It won't cash flow obviously for a bit, but there is a loan right now if you live in it for 2 years, you put 1% down, the gov kicks in 2%, and there is no PMI. I'm still waiting to hear more details. Is there anything on the loan I should watch out for?

I hear the market is going to crash and that you shouldn't start investing now. Instead you can help provide private lending for others! Hint hint, wink wink.

But really, I agree that the duplex plan is a great idea. In the mean time, keep running numbers on deals and gain that. I think its fine if you want to do out of state investing but make sure you're well read and comfortable. It certainly is easier to see how all the parts fumble together when its in your backyard.

@Nick Rudolph

Depending on whether you want to be passive or active there are several options. For passive investments there is crowdfunding, notes and tax liens

For more active investments you can be a landlord. With lower amounts of $ I recommend to people to invest in tax liens, notes or crowdfunding.

@Nick Rudolph , Unfortunately $35K does not go very far in Southern California. It sounds like you're flexible about moving to another area of the country to implement your plan, so that makes it more doable. You will have to be willing to change your lifestyle considerably, as you would be living in a tertiary city instead of a major one. Maybe you're fine with that, and if so it's definitely possible to do. On the other hand, maybe that's not what you're looking for in your life, in which case a passive investment through crowdfunding would be easier. The advantage there is that you'll get a more diversified portfolio across geography, and can also diversifiy across asset classes. If you're interested in more information, I need to know if you are an accredited or not accredited investor.

@Nick Rudolph , I see that you're in Long Beach. I'm just down the road from you in Orange County. If you are willing, there are a few areas in Long Beach where you can acquire a duplex or maybe triplex using your current downpayment and an FHA loan. I would look around your current area.