Best way to start out when you have CASH.

[Jonathan Studdard]

BP,

I have roughly a couple hundred thousand dollars coming my way (depending on the economic climate at the time as it is all tied up in RE in a trust) through inheritance. I know it is tacky and frowned upon to talk about, but it is my soon to be reality, and I don't want to squander it when it comes, so I've been researching. My grandparents made it all through RE investing in their lifetimes, and I want to grow it the same way. I also know that the economy and market at the time should determine which route I go.

There is just too much information in all the books and podcasts and blogs and I'm overwhelmed and need advice from seasoned investors. Everything out there seems to be geared towards people who don't have any of the help that I'll have starting with cash.

I have about $60,000 in equity in my current house, and I am soon to be divorced and sell it around the end of the current school year. My credit isn't great today, so I'll most likely have to get an apartment for a short time while I use some of the cash to rebuild my financial standing. I know that a house is not an asset as it takes money out of my pocket, and the equity I have now is from sheer luck. I've decided to minimize my expenses and dedicate the rest of my life to creating cash flow, and have been researching different strategies on BP and Audible for two or three years now. I've read (and listened to) a ton of books about foreclosures, BRRRR, flipping, holding, multi-family investing, wholesaling, etc.

I *think* I have decided that being an owner-occupant in a multi-family is the best way for me to start my path to financial freedom. But where do I go from there? Should I try to find one that is off-market with room to add value or go for one that is more updated and "safe"?

Can I do more using the money as cash reserves on bigger things altogether?

Should I flip and use the accumulative profits to buy small properties to own outright and rent?

What would your game plan be if you were in my shoes?

How would it change in different markets?

Thank you guys in advance, and please don't hold anything back.

[Chris Mason]

Cash buyers get their pick of the litter of homes & might expect a slight discount relative to what a financed buyer would have to pay for the same house. So if you can be a cash buyer, be a cash buyer.

To recoup your liquidity, check out some of the threads on here about "delayed financing." TLDR you can often slap a mortgage on it right after closing to get most of the money you used to buy the house back, but even if you can't the wait is only six months. 

This allows you to "recycle" 70% to 80% of the same money over and over and over again to acquire either more real estate, or whatever other income producing assets appeal to you (the lender will require you to leave 20% to 30% equity in the property, depending on this that and the other).

You don't see this talked about a lot, compared to other strategies, since such a small % of people are in the position to be cash buyers.