We have $80k to invest but we dont know where to start.

[Mel Kline]

My husband and I have 80k to invest but we unsure where to start.

We currently rent an apartment and have been able to save due to renting a very low cost three bedroom apartment. It has worked with well for us and our kids.

We are unsure where to start investing. My husband is currently a realtor part time and a full time furniture delivery man. I currently and a teller at a local credit union.

We have thought about flipping and rentals.

Should we start with moving into a duplex and renting out the other side? Should we rent out both sides and stay in apartment. We could get closer to $1,200 each side for duplex and are currently paying $730 for our apartment. Should we start with flipping a house first and then sell it and use the profits for a down payment on a rental?

We are in Western Michigan.

Thanks in Advance for any help!

[Brett Weaver]

Mel,

Here are some thoughts:

Duplex deal

If you are comfortable in your apartment I would stay there.  You'd be leaving $470 per month on the table if you moved into one side of the duplex.

Duplex deal vs Flip

You didn't share any past experience, but if you get the right deal in the right market, and are good at project management, having the flip experience under your belt would be beneficial.  It would be great to use profit off that deal to make your first buy and hold purchase.  However, there are many variables and much risk if you don't have experience doing a rehab.  Not enough info here to give a strong opinion.

Sounds like you guys are good at saving money. If the duplex cash flows well, then that sounds like the best first deal to me. If there is opportunity to fix it up and force appreciation (Search for BRRR Strategy) that would be ideal. You'd get to learn rehab and get your money back with a cash out refi potentially.