Getting started and assessing potential + challenges

[Kris Villasenor]

Hi everyone,

Long time lurker here. I'm interested in getting started with turnkey and/or brrrr for long term hold. I have 125k cash and own some land outright worth ~100k. However, my challenge is a lot of student loans of ~100k (bachelors and masters degrees), which consequently affects my credit. Of course, I don't think putting all my capital towards my student loans is appropriate, and I don't regret them either and I received an excellent business education from great schools. I also have experience managing remodels, contractors, subs etc and have even taken some community college trades courses (framing etc) so I have some basic trades knowledge. I don't own my own home and am blessed with cheap rent right now. Would prefer to invest instead of own the home I live in.

I've have had it suggested that to get started, I should buy a property that is under 100k in cash. I've also had it suggested that I should use my land to secure a loan under 100k, given my debt. My land is also buildable and I have plans from an architect for a 3 bd/2 ba home which would cost 300k to build (it's in CA) and is in an excellent STR location...but I'd need a construction loan to build it. AirDNA says a new build on my land would bring in 50k yr in revenue on the lower end. (edit: the property can have up to 3 units built on it...house with attached separate apartment + unattached ADU)

Of course, other people are telling me to park my cash in a high yield savings account and just chill LOL, but I'm not really comfortable with that either as an investment strategy. I've thought about my goals, and they're pretty conservative. Basically I'd like to make 8% or more on my capital, which would outpace my student loan interest and be worth it.

So, where do I start? There's potential here, but also drawbacks. Would love to hear your suggestions.

Kris