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Jacob Smith
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28 Years Old, $200K to Invest—What Would You Do?

Jacob Smith
Posted

I’m 28 years old and looking for some advice from investors who have been where I’m at.

Right now, I own my first investment property, which was a house hack. My fiancée and I are getting married soon, and we’re planning to sell her house. After the sale, we expect to have around $200,000 in equity available to invest.

I also recently earned my real estate license. At the moment, I work a blue-collar job, but my long-term goal is to transition into real estate full-time. I’d like to leave my current job as soon as it makes financial sense and focus on building a real estate business.

If you were in my position with $200,000 to invest, what would you do?

Would you:

  • Buy rentals for long-term cash flow?
  • Focus on fix-and-flips?
  • Buy foreclosures?
  • BRRRR properties?
  • Use the money as leverage to purchase small multifamily?
  • Keep a portion in reserves and invest the rest?

My goal is to build enough income and experience that I can make real estate my full-time career. I’d really appreciate hearing what strategy you’d choose if you were starting over today with this amount of capital, and why.

Thanks in advance for any advice, I genuinely appreciate everyone willing to share their experience.

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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • San Diego / Phoenix
15,149
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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • San Diego / Phoenix
Replied

Questions: 

a) What type of Blue Collar job ? Is it in some construction trade that you can use to help you flip properties? How handy are you?

b) When you say you want to make Real Estate your full-time job, do you mean being a typical agent that helps regular folks buy/sell properties? Or do you mean doing RE investment stuff?

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