If I had $475,000 cash I would get the highest ROI & cash flow by

[Steven Joseph Fogarty]

Hello everyone! Although I've been bingeing on BP podcasts & Rich Dad books, this is my first post.

I'm married, dad to 4 boys, closer to retirement than I care to acknowledge, looking to build strong steady retirement income over the next 2 or 3 years.

In advance THANK YOU FOR SHARING YOUR EXPERIENCE AND YOUR ADVICE.

My question is directed to everyone, but especially to those who have already created significant positive passive cash flow for themselves.

QUESTION TO YOU - IF YOU HAD $475,000 CASH TO INVEST ...

Drawing on everything you know, your successes, your mistakes, IF YOU WERE STARTING AT SQUARE ONE, how would you allocate / invest $475,000 cash in order to generate the highest ROI and greatest amount of net cash flow?

LIMITS. About 1/2 the cash would be from the sale of a primary residence. The other 1/2 would be coming from a 1031. I am not accredited. I'm no good with a hammer, not interested in flipping which seems too much like gambling at this point in my life. I live in high volatility Vegas, but I'm more interested in low-volatility high-cash flow anywhere. My FICO is terrible, thus conventional financing won't be available to me until I repair my FICO / financial statement after the months / years of steady income your advice will get me :-)

Thank you again for sharing your wisdom. And thanks to Josh and Brandon for providing such an awesome resource.

All my best,

Steven Joseph Fogarty

[Dave Foster]

@Steven Joseph Fogarty,  It ain't my first rodeo either.  And I know that looming feeling.  It can cause you all kinds of panic and poor decisions.  But slow and steady is still your friend.  With an egg like that now and 2-3 years to go the worst thing you could do is try too hard to play catch up. Life is what it is.  And if you think having no credit etc now sucks wait till that happens when you're 65 or 70.   

don't think about leverage any more than you have to go with the 1031.  And even then you may want to look at taking some mortgage boot and reducing that.  You're move to sell the primary is great.  don't replace that debt.  Rent for a period of time.  Or use the 1031 to buy a duplex and move into half if the numbers will work.

Debt has not been your friend.  It will certainly not start being your friend now.  Separate the 475 into two assets - one cash only that throws off the best flow you can find.  And one that has all the leverage necessary to satisfy the 1031.  Now your risk is consolidated into one property and the bulk of your estate is relatively risk free.

Don't spend a penny of the cash flow from the 475 for three years.  That should add another 100K to the fund.

Get rid of all debt including primary residence debt.  Going into retirement with personal debt is a recipe for disaster.

Build on what you've got.  Don't throw it on the table at risk.