I am 30 and have $100k. What should I do?

Question

My goal is to retire at 50 or earlier. I have a well-paying job and access to around $100k. Prices in D.C. are very high (3-unit buildings in the city are priced around $1 million with $6-7k in expected gross income). I am looking for any all all advice. Thank you!

Bill F. · Answer

@Nick Morrison Welcome to BP.

Step 1: Don't post your full name and any amount of money you have on an indexable website. Since that ship has sailed, I'd go into settings and make it so your last name doesn't show. With questions like this, there is a strong tendency for people to answer who have things to sell you, as seen in the above post.

Step 2. Use the search bar to see all the other times this question has been asked and answered:

What do I do with $75k

I have $100k to invest

Step 3: Figure out why you want to invest in Real Estate. For you it seems like FIR/RE. That's all well and good, but why do you want to retire at 50 and what do you plan on doing after that? The why will drive lots of decisions about what type of assets to invest or not invest in.

Step 4: Get a surface level understanding of the various niches of REI. From live and flip, buy and hold, turn key, notes, syndication, self storage. There are tons of ways to get involved that are off the beaten path of renting a single family home.

Step 5. Do an honest self assessment of what you like/dislike doing and what you are skilled/not skilled at.

Step 6: Take what you have learned in steps 4 and 5 to rule out things you can't/ don't want to do. If you hate dealing with people, buying and self managing 10 SFRs probably ins't a good life choice. What you are left with are the possible options for you to explore further.

Step 7: Pick an avenue and commit to finding an asset to purchase.

Best of Luck.

Tom Ott · Answer

20% down on multiple out-of-state Turnkeys. I would look in the Midwest where prices are low. Places like Cleveland or Cincinnati as they have not been discovered by too many investors yet!

Account Closed · Answer

@Nick M. the post written above by @Bill F. was well written. If you don’t know were your going take some time to study. Many of the folks that respond to post are trying to promote themselves or their service. As seen 50% so far in the replies.

Best regards

Zeke Liston · Answer

Hi @Nick Morrison, have you ever considered investing out of state? Columbus, OH might be a good place for you to consider!

Michael Wagner · Answer

I am admittedly biased but from a fundamentals stand point, it is hard for anyone to argue against self storage as an asset class that should warrant your serious consideration!  With lower income/expense ratios and default rates relative to every other mortgage based asset on the planet, the numbers speak what we as SS investors know...and that is that if done right, the returns in self storage are hard to beat.

Oleksandr Ivanovskiy · Answer

@Nick M.

I’m in DC area too. I invest out of DC.

You can of cause syndicate with other investors for multi family property in DC or out of town. You can also to the BRRR method.

Julien Raynard · Answer

Hi,

I've already invested in Cleveland and it's a great place for cashflow (+12%). If you have any questions concerning Cleveland, don't hesitate to reach out.

Cassi Justiz · Answer

Hey @Nick M.,

Welcome to the BP forums. As you can tell from the responses so far, there are plenty of markets where you can leverage your 100k into cashflowing properties. But as @Bill F. mentioned, you need to define your goals before you jump into that. There are plenty of people that will sell you whatever kind of property you want.  If you are looking into the FI/RE path, you need to decide what percentage of your retirement portfolio you want as real estate. Most people are not 100% on real estate, and those that are regularly end up diversifying within their real estate portfolio. (For example, I am 100% into real estate as my FIRE investment strategy but my highest priced and lowest priced rentals are $700/month difference in the rent. I also have investment property in two different states and even within my market I have properties in two very different areas).

Obviously, if you are on BP you want to be involved in real estate, but you need to decide how actively you want to be involved. Also, it's important to know what you like to do and what you are comfortable doing. The more involved you are, theoretically the bigger the returns will be. Some investors that actively work their own rehabs and rent to "high risk" tenants are consistently getting 30+% returns, but other people invest passively in REITs or private lending and are happy with 6% returns.

I know it got a little long, so to re-cap figure out what you like doing, decide what you have time to learn (and learn well), and decide what kind of returns you are going to be happy with. Once you have those questions answered, you should have a little bit more clarity on which path to go down.

I am 30 and have $100k. What should I do?

Most Popular Reply