Updated over 3 years ago on . Most recent reply
Best investment for 500k for newbie to BRRR
I've been gaining wealth over the years by a more conventional way of flipping and now want to start to BRRR. I have 500k and no debt to start off with, so what is my best bet? I assume buying and rehabbing one property where the total cost will not go over 500k? After that obviously rent out and cash out refinance, etc.? Is that the best way I can use this money to invest? Thanks in advance for the help.
Most Popular Reply
Just because you have the cash doesn't mean you shouldn't still use debt.
If you're looking to acquire single family rentals, if I were you I'd use leverage with that $500k so that you can buy 2-3 deals with short term debt (like hard money), rehab them, then refinance into conventional loans after they are rented out.
With that amount of capital though you have many other options to consider. You could get into multifamily at this point which has distinct advantages over single family. You could look at NNN commercial if you're looking strictly for passive cash flow. Or as another poster suggested you could consider being an LP in a syndication deal. But you're giving up all control with syndication.