Getting Started with large investment funds but little income
Hello,
I am 25 years old and interested in getting started in real estate. I currently have a job that pays 70k in the DC area and I am just scraping by, and I am catching wind that layoffs will happen soon. I received a large inheritance from my deceased grandfather (500k) and it is tied up in stocks and mutuals funds. I know the safest route will be to leave it in the market and let it grow but I really truly am interested in real estate investing and cannot stomach continuing to pay 2k in rent when I could be building equity. My family has some experience but I am most interested in buying a fixer upper all cash and flipping it in the louisville/midwest area. If you were in my shoes, what would you do to escape the 9-5 grind and make real estate investing a full time gig? I dont want to lose everything of course so am prepared to start small with low risk properties and live at home if I have to. Thanks.
Most Popular Reply
I would only touch that money for a DP for a house hack. At 25 years old that 500K will compound to millions when you hit 50+. You have no experience with real estate so taking out 500K with a hope to make headway in real estate is not wise. If you love real estate start with a house hack. Can be a 2-4 unit, live in flip, room by room. etc. If you are barely scraping by at 70K I would also make increasing your income a priority or reducing living costs(stop adding consumer debt). Once you do a house hack, do another then decide after you have your feet wet if taking out a chunk is worth it.