High w2 salaries, $100k cash, experienced DIY'er, advice needed

High w2 salaries, $100k cash, experienced DIY'er, advice needed

Wilmington, MA · Member since 2015 · 32 posts · 2 votes

Our story.

We're high salaried employees. We have excellent credit. We have zero debt except mortgages. We currently own two homes with mortgages ~$700k that we don't want to part with. We have $100k we're willing to start investing with, ideally we only use half of that on a cheaper place but we're in the Boston area so it might not be easy. We might expand our search out to western Ma or even NH for cheaper places. I've rehabbed three of my own homes and two others so I'm very comfortable doing most renovations myself. I would like to start building some passive income so I've been looking at multi-families but I'm not opposed to a single family or even a flip if the numbers work. 

Given this information, what kind of advice can you give me on where to focus/start? I really want to buy multi-familes as I feel the rental income will give me the best opportunity to continually loan and buy and grow. My ideal situation would be to buy a two family that needs work, do it myself (3-4 months) and then have a cash flow place.

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  • Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    Let me qualify my advice with the fact that I don't have broad experience with real estate.  All I know is buy and hold.  Although, I am working on my first flip.  We'll see how that goes.

    I really like your idea of finding a fixer upper that you hold as a rental.  Buy and Hold is great for people who have full time jobs because, especially when you only have a few, you can run a small rental business on the side, no problem.

    Use your W2 income for capital generation and then put that into buy and holds.  I started this back in 2005 and it has worked out well for me.  Plus you have an advantage over me, being handy.  I have to pay for all my labor.

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    7y

    It sounds like you pretty much answered your own question there at the end.

    I agree you should look for a 2-4 unit that needs work so you can rehab and force appreciation.

    Then you can get it rented and refinance all or most of your cash back out for another deal.

    This is known as the BRRRR strategy here on the forums and is a great way to build a rental portfolio.

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