What would YOU do w/ $20k?

[Brian Smartt]

Hi all! Just sold some stocks and got $21k. I'd like to invest it into RE. I wouldnt mind something with HIGH risk either.

So my question is : If you had $20k, where would you invest? and what would you invest in?

Hopefully this is the right category for this question - if not, I apologize!

Thanks for taking the time to answer.

-B

[Michael Seeker]

The important question is what do you hope to accomplish?

When I first started investing I wanted to flip, flip, flip and end up with a big pot of gold (cash) at the end of the day.

I quickly realized that wasn't the best long-term play and once I wanted to quit flipping, the cash would not come in anymore.

I've since switched gears to investing in multifamily properties that cashflow well. Depending on your personality, this may or may not work for you. I get along very well with most of my tenants and have very few headaches. That being said, the proverbial pot of gold is more like a long trail of gold coins. You're not going to feel rich right away, but you'll certainly be able to build a sustainable income stream much better than by flipping.

This also depends on your market. If I was starting out with $20K to invest in my market I'd buy a Quad with FHA or conventional financing with ~5% down. Your ability to qualify for such a loan would be pretty strictly based off of your income and not the building's. But you could get into a 200K-400K 4 unit property that pays for itself plus gives you a place to live relatively cheap or free.