New to real estate. 100k to invest.

[Jason S.]

Hello,

I am new to Bigger Pockets and new to real estate investing in general. Without going into too much detail, I have 100k to invest and am considering purchasing a rental property as an alternative investment to the stock market. I already have a few hundred thousand in the stock market and am becoming convinced that over the long term using the 100k on a rental property could be a better investment. So I wanted to put this question out there. If you had 100k to use for a real estate investment how would you get started? Would you purchase one property and use most or all of the $$ as a down payment. I live in Chicago. Would you focus on Chicago properties? Out of state properties? SFH or multi family? Any/all thoughts are very much appreciated.

[Will Fraser]

If it were me in the situation I would look either at the most doors I could get for the buck in a stable market, like a $750,000 16-unit multi-family in my market that is currently c-class (window unit air conditioners, dated stylings, and 10+ year old appliances, etc), extremely well located, and, based on all that, probably a good target for adding value over time and increasing the appraisal value substantially.  You would be able to own this type of asset outright.

Otherwise you could partner on a deal like this with a few folks and own a higher quality property with TONS of lifestyle pull.  There is a lower probability of adding value or appreciation over time with this IMO, but it has appeal that should keep it stable as an investment and be an enjoyable one to own (and possibly to maximize any time of vacancy in the unit with a site-visit + skiing?)

Those are two ideas, but there are about 1,000 other potentials.  Hope that helps :)