50k to Start: Suggestions?

[Alton Williams]

Question for you pros: if you had 50k cash to get started investing, would you purchase 1 home for cash in a C-/D area or finance the purchase of 2 homes in a decent suburb with 20% down each? Or would you choose something different altogether? The sales prices in these areas are approx. 40k for the cash purchase and 100k for the finance purchases).

[Scott Schultz]

@Alton Williams I started with about $40K saved up, I spend my first few years Flipping houses, building up the pile then graduated to rentals and continued flipping, I havent done a flip in over a year now, but would if the right one came along.  Having a solid foundation is key, adding significant value to every deal allows you to grow,  I would say with your $50K go out and do a rehab and make $30K on a flip so you can add $20K to your $50K  ($10K set aside for taxes) do it a few times so you have a great launching pad and rehab experience for the rentals. dont buy turn key rentals, always buy below value, and push the equity with a rehab, and right now in the market cycle, only buy great deals, marginal deals will burn you when this market changes. Good luck!