$100 000 - Start here?

[Account Closed]

A friend recently asked me this question: if you had $100 000 in capital and want to get into property, where and how would you start? I suggested one of two options. One, purchase two properties worth $100 000 and put 20 % down for each unit. Keep $60 000 in a savings account to cover unexpected costs and expenses while you gain a little more experience about real estate investing.

Secondly, try to purchase a fourplex in a "good" neighborhood for around $150 000. Put down 20% and keep the rest of the capital in a savings account to cover unexpected costs. Of course all the properties need to be cashflow positive with a good ROI (deposit) and IRR of at least 50%.

Let me know what you guys think and share with new investors where you would start if you had $100 000 and perhaps what areas would you consider.

Looking forward to your contributions!