150,000 to start investing and don’t know where to begin!

[Desstani R.]

We just sold our first house and made 150,000 we now live traveling on the road but want to invest that ASAP so it’s not just sitting in the bank Into real estate but don’t know where to start. Should we buy one nicer single family home and short term rent like airbnb? 2 not so nice single family homes and long term rent get a duplex? We listen to the podcast and have started reading the books but the analysis paralysis is real especially having the money to actually do something and never having this much in our bank before at once! 

[Jason Wray]

Desstani,

Having access to $150K is a large chunk of equity and it can be spread over 2-3 properties.  Most people do not realize you only need to put 5% down on a New primary home and still get a good rate.  An investment property only requires 15% down even up to 4 units and only 10% down for a Second/Vacation home.

When you talk to the Bank for example we run the numbers to ensure you have enough money to cover downpayments, closing costs, renovation/repair money etc.  You only need to put a small game plan together to start running the numbers base don zipcode, property type, sale prices, common rents/cash flow.

You would be surprised how far $150K can get you to cover a New primary home and 1-2 rental properties back to back. If you sold your home its not a bad idea to do a little BRRR move into the duplex to be able to put less down and move out in 6-12 months to transition it into a full rental. I see it every day so its fairly common to me the process in general so if you ever have any questions feel free to reach out or send me an email. I enjoy helping and talking REI to help other members avoid mistakes.