How to invest $50,000 at age 49? In Michigan

[John Moss]

I have $50,000 saved I am age 49 live in Michigan, how should I start in real estate?

[Chris Coleman]

@John Moss it really depends on your goals and how active or passive you want to be in the investment. I

If you want to be very active, then $50K can Cash Flow pretty well finding a Class C/B property, renovating it, and renting it out using the BRRRR method in certain markets in the Midwest or Southeast. You can lookup what the BRRRR method is here on BiggerPockets. Again, this strategy will require you to be VERY directly involved.

If you only want to be partially active, then you can definitely purchase cash-flowing Turnkey properties with $50K in places like Kansas City, Memphis, Oklahoma City, St. Louis, Jacksonville, and others. Again, you can lookup what the Turnkey method is here on BiggerPockets, as well as Google. The nice thing about Turnkey is that the rehab is already completed and it generally cash flows from the first month of purchase.  Again, this is a buy and hold strategy.

If you want to be completely passive and have essentially no involvement in the property, then you can invest in multifamily syndications with as little as $25K-$50K. While not all do, there are plenty of multifamily syndications that provide Cash Flow from the beginning on a monthly or quarterly basis. Be aware that many of these require you to be an accredited investor, so you'll need to know that.

If you do not want to hold rental property, then you can look into using the $50K for a fix and flip.  Although that would be on the low end of the price range depending on your market.  You would most likely need to partner with a hard-money lender or investor in this case to supplement your $50K.