Investing starting with a lump of around $500k

[Dawn Batts]

Share your thoughts on buying rental income properties starting with about half a million dollars. 

     The "why" is the important part of this question. If you are buying properties in the $100k range, do you buy the property cash, or put down a payment and pick up a mortgage? Why would you do what you do?

[Steve Vaughan]

Do again what got you the $500k in the first place.  Replicate and optimize.

We will pretty much all recommend doing what we do, what we know and are good at or what WE sell.  

All niches in RE work. We need to deploy the one we know the most about and are an expert in.

Your 2nd post tells a little bit about you, but that's all there is for us to go on.  GIGO- garbage in, garbage out.  No offense meant. 

What are you hoping to accomplish?  Preservation or growth? A legacy or a Lambo? 

As a 10x Napper with no job for 17 years, a strong why and freedom at top of mind,  I recommend doing what I do if you want that.  I own and control value add homes and multifamilies to maximize my reward to effort ratio, cash-flow and equity capture.  The work is in the beginning, then the naps and freedom go on for years.

My goals are the opposite of anyone investing OOS or in a syndication or crowdfund with no say. How can you possibly value add or influence an IRR outcome when you cant even vote? Can't leverage it up to $2M if you want? Maybe attractive to some, foreign to me. But me is not a busy professional with no time.

Most heartbreak in this business I have read about, the common denominator, is loss of control.  My partner, PM, lender, agent, lawyer, sponsor, platform... did this and I suffered.   Be in control.

If $500k is a small slice of your world, go ahead and throw it in a pile with a pool of others' funds and hope for the best. If $500k matters and you want to grow it for generations, watch it and control it.  Be involved and be able to make and act on your decisions. My bad advice for the morning