200k sitting in the bank

[Enzo Pazos]

Hello everyone!

I’m originally from Argentina but I am currently living in the US for almost 6 years already. I am going to start investing as soon as my work permit arrives and banks will lend me money. That being said, I don’t have any experience investing besides books, podcasts, etc.

My parents are still in Argentina and they have money saved up. They would like to start investing this year and to have a strong passive income starting within the next 3 to 5 year (no need to have it right after investing)and be able to retire. What do you guys suggest they should do? I will be able to get loans from banks and/lenders soon. Most likely the way they would buy properties here in the US is through me. I’ll be the owner, they’ll get the cash flow.

First I thought about buying a bunch of SFH (100k each) with a 20% down payment. Maybe a better way to go would be buying a big multi unit ( but I don't feel ready for this yet). What are your thoughts? THANK YOU!!

[Jonathan Kincaid]

Enzo,

Great question! From my experience, we got very comfortable with Single Family Homes (SFH) rentals, now we're looking to Cash-Out Refi and sell them via 1031 exchanges to move up into commercial apartment buildings. I like this as it gave us a bit of practice, before getting into larger acquisitions with more at stake. I also feel that it allowed us to diversify our investments into multiple houses/duplexes. Certainly people such as Grant Cardone would say "Go Big" from the beginning and get into apartment buildings. I personally am a fan of starting with SFH/Duplexes/Triplexes and working your way up into apartment buildings. Crawl/Walk/Run

Caveat: I highly recommend teaming up with a good property MGMT company, particularly if you get an apartment building, but they have been a time/stress savior with our SFH/Duplexes, too!