24 years old $100,000 what would you do?

Question

hi i saved up a little over $100,000. Just trying to get some input from some experienced ppl on how they would invest this money. I'm trying to get involved in real estate and currently renting right now I live in the eastern part of lancaster county Pa.

Craig Curelop · Answer

@Jesse Streett - Congratulations on saving over $100k! That's no small feat at your age.

Although you have significant savings, this can sometimes be a dangerous trap to fall into. Spending needlessly can kill investors. I'd recommend using this money wisely to get the highest return possible. Pretend like you have no more than $30k to invest with.

For your first property, I highly recommend you do a house hack. Purchase a multifamily property with a 3.5% down FHA loan. Live in one unit and rent the others out. This will allow you to eradicate your rent expense which I'm guessing one of your higher expenses on a monthly basis. Additionally, the tenants will be paying down your mortgage, you'll get huge tax benefits, and you'll gain property management experience.

Take a look at this blog post from Brandon Turner on how to House Hack.

https://www.biggerpockets.com/renewsblog/2013/11/02/hack-housing-get-paid-live-free/

Rebecca G. · Answer

Hello Jesse!

Great job on being able to save money at such a young age. As far as investing, I would definitely get into turn-key real estate. The ROI I receive on my properties has by far outweighed any other investing I have looked into. Look into diversifying your investing, SFH and MFH. Look into areas that aren't as high priced so that you can buy multiple properties. Last but not least, make sure whoever you invest with are the right people for you!