Best strategy with $150k cash plus $50k/year savings rate

[Loid Danga]

Hi BP family,

I am a brand new member of the BP platform. Accidentally stumbling upon BP is the greatest find of 2020 for me! I would appreciate your views on how one can start and scale their portfolio given the following facts: 1)Live in the Washington DC/Maryland/Northern Virginia area 2)decent W2 job. Savings rate of $50k/year 3)busy work schedule and limited time for full gut renovations. 4) have two other friends whom i can partner with and can also contribute $50k/year in equity- i am just not sure how to structure the partnership for best financing terms. LLC commercial financing terms make buy-and-hold deals unprofitable(in the local market) so setting up an LLC seems not ideal(notwithstanding other asset protection reasons)

After a lot of reading, i am leaning towards house hacking one house a year but i am just wondering if there are other creative ways to scale up the portfolio.

[Ryan Cleary]

Loid, Welcome! Since you live in an expensive market, you should consider long-distance investing.  I do the same while living in the New York market.  You can make just as much money if not more than house hacking.  150k is more than enough to buy a significant multi-family property in many great and upcoming markets!

If your interested shoot me a message, I only recently started long-distance and just closed on my second out of state deal, this is my new strategy from now!

Happy to share what I have been doing.