300k to invest, unsure what to do

[Sequoia Heuer]

Hi so I’m on the big island of Hawaii and I have a house that currently appraises for around 390k. It’s my primary residence and I own it outright. Lenders say they will give me 300k as a refinance. I have some experience in the new construction world so I’m considering build to rent. If I can buy the land and build for 300k and the after build value will be 400 or more then I could borrow against that one and do it again and so on. The only problem with that I see is it’s a little bit slow. Building in Hawaii can take a year or more mostly because of permitting and sometimes materials are hard to get quickly. 
The other option I’m considering is using the 300 to buy properties out of state, where there are better deals for using the brrrr strategy. With 300 I could buy 2–3 houses at a time, hire some contractors to fix them up and get them rented. 
The second option seems harder to me but potentially more profitable. I’m currently reading the book on long distance real estate investing by David Greene so that’s helping some. 
What would you do with 300k? Thanks!

[Will Barnard]

WIth this type of question, you will get all kinds of answers leaving you with the same question again. Everyone has an opinion, so it is imperative that YOU analyze what your goals are, what skills you have, what you like and don't like. If your goals are cash flow only (as in you want mail box money to live off of), then finding that cash flow market would be your best bet. If your goals are wealth building, then finding a market with great appreciation can be the better play (Hawaii being a decent choice for that and much of CA being some of the greatest for that). 

Another thing to consider here (that went unmentioned above) is that your $300k comes in the form of debt from your primary residence so if you lose any of it in a bad investment, you will be paying on that debt out of your pocket to keep your primary home. That is something you really need to be careful on in what investments you choose and ensure you mitigate risks through proper due diligence, education in the investment strategy you choose, & proper team building to accomplish the goal. Borrowing from your home at a lower rate and investing that capital into a higher return is the process of arbitrage and some will say not to do it while others will give the thumbs up. I am somewhere in the middle on that and only do it when I know my downside risks are fully covered in the investment.