Best Way to kick off investing with 750K

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Best Way to kick off investing with 750K

Jerry ShankPro Member
Member since 2025 · 2 posts · 5 votes

Relatively new to real estate investing. In a unique situation (at least for myself) and wanting to get ideas. Recently have come into 500K and looking to see best recommendations on how to move this into real estate. Have done STR for the past few years and am strongly considering going deeper into it. Goal is to make real estate main source of income and sights are on best cash returns while building a portfolio. Just wanted ideas about how any experienced investor would recommend to go about investing this with the goal of getting the best return immediately and then continue to scale. Thoughts, ideas are appreciated.

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
11mo

@Jerry Shank,

With $500K and STR experience, you're in a great spot to scale. If you're focused on cash flow now + long-term growth, I’d seriously look at turnkey rentals in the Midwest and Southeast.

Plenty of sellers are offering strong incentives right now:

  • -Interest rate buy-downs
  • -Cash back or credits at closing
  • -Rent guarantees for 6–12 months
  • -PM in place = truly passive from day one

Markets like Birmingham, Cleveland, and San Antonio/Dallas/Houston, TX still cash flow well, and you could pick up 5–8 properties using 20–25% down + reserves.

This gives you a solid cash-flow base, letting you layer in higher-yield STR/MTR plays without being 100% reliant on them. Great way to build a portfolio and get out of the feast-or-famine cycle STRs can bring.

Always happy to chat more about what has worked for other investors. Best of luck!

[email protected]313-221-8718
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  • Stephen FisherPro Member
    Rental Property Investor · Costa Mesa, CA · Member since 2017 · 26 posts · 16 votes
    11mo

    Jerry. I've been scaling pretty rapidly on SFR with a system in place in Kansas City. Not sure if it's for you, but happy to share my experience.

    0Reply
  • Moe Sidd
    Investor · Toledo-MetroDetroit-Dallas · Member since 2022 · 122 posts · 71 votes
    11mo

    @Jerry Shank, Congrats on being in that position, $500K gives you a lot of flexibility. If you want solid cash flow and scale fast, I'd look into turnkey long-term SFH rentals in Midwest markets such as Ohio, Michigan, and Indiana, as they have lower prices, strong rents, and landlord-friendly laws. You'd make more doing long-term SFH rentals out-of-state than STR in most other markets on the East and West Coasts!

    I'd target rent-ready (or better yet already tenanted properties) around the 100k mark, that are pretty close to the 1% rule if possible. Happy to share some example deals or returns if you'd like to see what that looks like.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    11mo

    Go with what you know!

    There are too many options that you could lose money on while learning.

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    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    11mo
    Quote from @Jerry Shank:

    Relatively new to real estate investing. In a unique situation (at least for myself) and wanting to get ideas. Recently have come into 500K and looking to see best recommendations on how to move this into real estate. Have done STR for the past few years and am strongly considering going deeper into it. Goal is to make real estate main source of income and sights are on best cash returns while building a portfolio. Just wanted ideas about how any experienced investor would recommend to go about investing this with the goal of getting the best return immediately and then continue to scale. Thoughts, ideas are appreciated.


     F real estate investing. Too risky. Bet all of it on the Browns to win the Super Bowl.

    3Reply
  • Kate Sanchez
    Member since 2025 · 240 posts · 97 votes
    11mo

    @Jerry Shank Great spot to be in. With $750K, you could mix a few strategies - maybe buy one or two STRs for cash flow, use leverage on a few long-term rentals or small multis for appreciation, and keep a reserve for future deals. Focus on markets you know or can manage easily. Good luck getting started!

    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    11mo
    Quote from @Jerry Shank:

    Relatively new to real estate investing. In a unique situation (at least for myself) and wanting to get ideas. Recently have come into 500K and looking to see best recommendations on how to move this into real estate. Have done STR for the past few years and am strongly considering going deeper into it. Goal is to make real estate main source of income and sights are on best cash returns while building a portfolio. Just wanted ideas about how any experienced investor would recommend to go about investing this with the goal of getting the best return immediately and then continue to scale. Thoughts, ideas are appreciated.

     Real @James Wise

    If what James said is too risky, go to this place, called a "Casino". Pretty good returns there

    [email protected]859-443-4952
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    0Reply
  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    11mo

    Congrats on the dry powder—now put it to work strategically. Split the 500K into three buckets:
    1️⃣ Deployment: Buy 4–8 cash-flowing LTRs or small multis in stable, landlord-friendly markets. Stick to a tight buy box and have a PM validate rents and rehab before offering.
    2️⃣ Value-add: Mix in light BRRRs to recycle capital quickly instead of parking big chunks in one STR. Mid-term rentals can be a bonus if zoning fits, but don't let regs lead the plan.
    3️⃣ Reserves & velocity: Keep solid reserves, then refi or use lines of credit to scale.

    Next step: define your buy box, pick one market/team, underwrite 20 deals this week, and write 3 offers that hit your numbers.

    1Reply
  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
    11mo

    @Jerry Shank,

    With $500K and STR experience, you're in a great spot to scale. If you're focused on cash flow now + long-term growth, I’d seriously look at turnkey rentals in the Midwest and Southeast.

    Plenty of sellers are offering strong incentives right now:

    • -Interest rate buy-downs
    • -Cash back or credits at closing
    • -Rent guarantees for 6–12 months
    • -PM in place = truly passive from day one

    Markets like Birmingham, Cleveland, and San Antonio/Dallas/Houston, TX still cash flow well, and you could pick up 5–8 properties using 20–25% down + reserves.

    This gives you a solid cash-flow base, letting you layer in higher-yield STR/MTR plays without being 100% reliant on them. Great way to build a portfolio and get out of the feast-or-famine cycle STRs can bring.

    Always happy to chat more about what has worked for other investors. Best of luck!

    [email protected]313-221-8718
    4Reply
  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
    11mo

    @Jerry Shank,

    Welcome to the BP community.

    Having your sights set on REI at anytime I believe is a food plan to build wealth. With a kick starter of an investment like you have you have a step up on most. But you still need to be careful and make sure you are doing things right and the way that fits your investing goals.

    I recently worked with someone in your same position.  She needed to deploy 600K in an SDIRA.  we were able to find her the right investment that would grow without much hand holding, and she was able to find good cash flow right away.

    When I talk to other investors i always mention that with the prices of new construction being on average lower than existing homes for the first time in many years, now is a good time to look to New construction investments.  this also offers a few other advantages.  Lower maintenance costs and builders are able to offer better incentives that solve for some of the problems in this market. 

    You are in a great position. Do your research.   Let me know if I can answer any specific questions.

    Best of luck

    [email protected]651-492-5652
    0Reply
  • Kate Nixon Taylor
    Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes
    11mo

    Hi Jerry, I know some developers here in the Triangle of NC that are looking for 500k from a private investor and offering 30% returns. I would be happy to put you in touch. 

    I am also with The One Brokerage and can talk over some financial strategy with you if you are interested in using leverage. Personally, I would be looking at multifamily if I was going to use that money for investing on my own deals.

    Cheers, Kate

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    11mo
    Quote from @Jerry Shank:

    Relatively new to real estate investing. In a unique situation (at least for myself) and wanting to get ideas. Recently have come into 500K and looking to see best recommendations on how to move this into real estate. Have done STR for the past few years and am strongly considering going deeper into it. Goal is to make real estate main source of income and sights are on best cash returns while building a portfolio. Just wanted ideas about how any experienced investor would recommend to go about investing this with the goal of getting the best return immediately and then continue to scale. Thoughts, ideas are appreciated.

    You've got too much money. You won't learn discipline in your investments and your returns will suck dirt. To really do a bang up job, think like someone who doesn't have anything, scrutinize deals, buy using creative finance and safeguard your assets.
    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    11mo

    @Jerry Shank 

    With $500,000 to invest, you’re well-positioned to create both immediate income and long-term wealth with the right structure. Since you already have experience with short-term rentals, expanding there makes sense as they provide strong cash flow and significant tax benefits.

    By materially participating, you can treat income as non-passive and use cost segregation with bonus depreciation to write off a large portion of property costs in the first year. If you or your spouse qualify for Real Estate Professional Status, those losses can offset other earned income, creating major tax savings. Placing each property in its own LLC and running management income through an S-Corp (with enough property management fees and retirement) further reduces taxes and limits liability.

    A balanced allocation could be $250K–$300K toward two or three short-term rentals in regulation-friendly markets using leverage to control around $1M in assets. Another $100K–$150K can go toward a small multifamily or BRRRR project to build equity and create refinance opportunities, while $50K–$75K in passive syndications adds diversification and additional depreciation. Keep the rest for reserves and startup costs.

    Focus on building solid systems for bookkeeping, tax planning, and management to scale efficiently. Using cost segregation, REPS, and 1031 exchanges together allows you to minimize taxes, recycle capital, and reinvest profits. This approach builds strong cash flow now while compounding long-term, tax-efficient growth.

    This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

    [email protected]941-914-7779
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    1Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    Given you're already in STRs, I would keep moving forward with this strategy assuming you're having success with it. Otherwise, I would look into medium term rentals next as you're already doing the same thing (pretty much). 

    I would also consider getting into syndications if you're looking for diversification from your market(s) that you invest in.

    [email protected]
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    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 991 posts · 1k+ votes
    11mo

    Hello @Jerry Shank,

    Whether focusing solely on immediate cash flow is the right answer for you depends on your goals. If your only goal is cash flow then you can buy almost anywhere if the property is cheap enough. If your goal is financial independence or income security, this requires far more. Long-term income security requires a rental income that meets all of the following:

    • The rental income must increase faster than inflation because every time you shop it costs more to buy the same goods and services. Only if your rents increase faster than inflation will you have the additional dollars needed to pay future inflated prices.
    • The income must be sufficient to replace your current income; you will need to buy multiple properties (scale).
    • The rental income must last throughout your lifetime and into your children's lifetime.
    • The income must be reliable. It must come in every month regardless of the current economy.

    To keep this post to a reasonable length, I will only cover scaling here. I will start with an over simplified example to show the concept.

    Suppose you need $5,000/Mo, to replace your current income. Also, assume: each property generates a $300/Mo cash flow, costs $250,000, and your only acquisition cost is the 25% down payment. How many properties will you need?

    • $5,000/$300 ≈ 17

    How much cash from savings is required to purchase 17 properties assuming the only acquisition cost is a 25% down payment.

    • 17 x $250,000 x 25% ≈ $1,062,500

    One million dollars is a lot of after tax money to accumulate. However, there is a better way.

    Cash-Out Refinance

    If you invest in a city where existing homes appreciate rapidly, you can grow your portfolio at a fraction of the cost of investing in a slow or no appreciation market. An example will illustrate how this works.

    Suppose you (still) need $5,000/Mo, each property costs $400,000, the cash flow is $300/Mo, the appreciation rate is 10%/Yr, and your only acquisition cost is the 25% down payment. To purchase your first property:

    • 25% x $400,000 = $100,000 plus a $300,000 mortgage.

    How many years will you need to let the property appreciate until a 75% cash-out refinance yields $100,000 so you can acquire another property? In this example, I will assume the mortgage pay-off amount remains $300,000 for simplicity.

    • After one year: $400,000 x (1 + 10%)^1 x 75% - $300,000 ≈ $30,000
    • After two years: $400,000 x (1 + 10%)^2 x 75% - $300,000 ≈ $63,000
    • After three years: $400,000 x (1 + 10%)^3 x 75% - $300,000 ≈ $99,300

    So, after three or four years a 75% cash-out refinance will yield the needed $100,000 down payment for your next property. Now you will have two properties appreciating. The growth is geometric, as shown below.

    Summary

    Cash flow pays bills but appreciation grows wealth. So, if your goal is long-term financial independence, only invest in cities where prices and rents rise faster than inflation.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    10mo

    Concentration > Diversification

    If you have experience and are good with STR's, I would go 100%

    Best of luck

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  • Jerry ShankPro Member
    OP
    Member since 2025 · 2 posts · 5 votes
    10mo

    Thank you to everyone who replied. This has been a huge help. 

    0Reply
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