What should I do with $100K cash?

[Account Closed]

I live in Los Angeles and am new to real estate investing. I have about $100K saved up and am able to save $4k/month. My goal is to build a large enough portfolio to live off of (I'm still in college). I'm interested in BRRRR but not sure which market -- maybe Cleveland or Columbus? I've been reading a ton about real estate, and I'd be interested in becoming an investment-friendly real estate agent. Would it be possible to do deals in the Midwest while I'm still going to college in LA?

Please reach out if you have any real estate groups I can join!

[Becca F.]

Congratulations on having $100k saved and being able to save $4000 a month! You're way ahead of many college students. Would consider doing a house hack once you have a an accepted job offer and start working? Do you think you'll stay in the LA area? 

I agree with @Drew Sygit's comments about knowing what is Class A, B, C and D. I invest in the Bay Area and Indianapolis metro area. Most of my properties are Class A (Bay Area and Indianapolis suburb) and I bought Class C in 2023 to try to "cash flow". I've had constant repairs with Class C#1 and this was a house that went through an inspection and had some minor repairs and I'm losing $300 to $500 a month most months.I also had a new AC unit stolen right before the tenant moved in. BRRRR is challenging OOS and you need a trusted team.

I think the property manager is the one of the important parts of the Core 4 team. Two very honest PMs gave me assessments of my Class C properties. They told me to get a cage for the AC unit (no one mentioned that before) and what would be my likely ROI in the future (with projected appreciation, rent increases, capital expenses, etc). I disagree with buying Class C and to focus more on appreciation and look at Class A and B. I can tell you several stories of California investors who bought Class C and are losing money.

I recommend attending local meetups to network with other investors who buy locally as well as OOS. You can also look up Columbus or Cleveland investor groups on Facebook or Meet Up. And if you do decide to buy in Ohio, network with local investors (someone unbiased, not trying to sell you anything) and fly out there to get to know the area.