What would you do with $100k?

[Mike Williams]

Hello all! I did join the pro membership but decided to post this question here since I’m new to Real Estate investing. So my question is this, if you had $100k to get started, and your goal was to get to $4k per month cash flow as quickly as possible.....what would your strategy be? I live in SoCal, but more than likely am looking to invest out of state, since my $100k won’t go far here. I simply want to replace my income, because my knees can’t take my line of work much more (I’m a Respiratory Therapist)....and I would like more time to my family. I will be attending local REI meetings starting this month, but at this point have zero connections. Thanks in advance!

[Casity Kao]

@Mike Williams  Hi Mike,

I think the fastest way for you to get 4,000 monthly income off 100k is to buy rentals under market value, and then find a bank that will allow you to cash out refinance, preferably with no appraisal, just electronic value under a year. For example in my market we have a bank that does lines of credits for high credit worthy individuals off of flips and rentals up to 75-80% of value even if you just purchased the property. So for example a duplex we recently purchased for $131,000, that is renting for $2000 we put 10,000 of capex into the home and the bank had an electronic value of 169k. After a site visit which we did not pay for to get a BPO, the bank reassessed the value at 189k and we were able to take out all the money we put for the down payment and capital improvements and an additional 10,000 that we used to buy another investment. This will allow you to use the BRRR strategy. If you buy turnkey, you could also buy 2-4 properties with 100k and use that cashflow to buy more properties as well but you will run out of money to buy properties because the down payment will still be in the property. If you'd like to invest in the Michigan market, we have invested throughout the state so feel free to reach out.