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Updated about 6 years ago,

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4
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0
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John S.
  • Chicago, IL
0
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4
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Unexpected inheritance/windfall... spread it out?

John S.
  • Chicago, IL
Posted

Hello BP fam! Here's my story. 

A couple of years ago, my Dad passed away and left me an inheritance. There is also a wrongful death lawsuit, in which I am starting to receive proceeds. I never expected myself to be in this situation, but am resolved to make the most of it. 

My Dad was actually invested in some real estate, and taught me a few basics. Nothing sophisticated, but good fundamentals. e.g. he explained CapEx to me, but never knew it was called that. Sadly I had to sell the properties he owned, to split the proceeds among siblings/Mom. So I am actually in the unusual position of having more experience in selling (5) properties than buying them (1).

For a while there though, between ~12-18 months, I was the landlord for his properties! Just fell into my lap. Nothing terribly difficult, a few repairs and a few months of "the checks in the mail". I never had to find new tenants or anything, so I just got a little slice of the life. But I decided that it's something I could handle and knew I wanted to invest in real estate down the road. Well here we are.

Things are mostly done now, except for the lawsuit settlement, which should (finally) be finishing in the next few months. All said and done I should have something like mid six-figures to invest. Which brings me to my real question here, if you're still reading this far.

Should I still just start with a single property? Or, because of my situation, just invest in an apartment building or a number of houses right in my first year? Am I just wasting my time buying a little house, when I (fortunately) have the ability to go much bigger straight away? I also don't know how much to "spread out" (number of houses in the suburbs) vs "go vertical" (e.g. 6 flat in the city). Trying to think more about strategy than tactics right now, if that makes sense.

What a weird situation I find myself in, a trying few years in my life tbh... but also I have this opportunity now to grow something big, and that's exciting. Thanks for reading, and any insight or advice you can provide.

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