$80K Cash- What should I do?

[Abdul Jabar]

Hello good people,

I worked hard and saved $85K cash. I wanted to know what are my best options to invest this and start earning some income. I am open to any idea that would generate a revenue stream without a lot of headaches as Im continuing to work two jobs. I have researched all over and thinking of a couple of moves and would like some expert opinions:

1) What do you think of Roofstock- my only fear is hidden costs, or tenant turning into squatters, or no tenants after a few months- how to mitigate these issues. Is Roofstock a good option.

2) Buy a home purely for investment, around a $150K home with a $1500 rental income and put down $85K cash and mortgage the rest

3) Is there any business that I can invest in which could generate $1500-$2000 after all expenses , without the need of me being there?

Please advise as any information would be highly appreciated.

Thank you

A.J

[Ben Riechmann]

I made money building and selling businesses.  A mistake I made early on was to put too much cash into properties.  Also, do not realize I could take on a bigger property than I thought I could.  Although different property sizes always have different pros and cons.  I would try to hold back as much of that cash as you can and fund deals from banks, private investors, or using other people's money as much as money so that 80k will go as far as possible.  Not saying that you are trying to put that all into a property, but especially when I see this boom not lasting forever and not sure how property values can be up despite the low interest rates, but you want some cash in reserve to act quick and not just depend on the bank for equity.  It is always good to have disposable income at your fingertips when deals happen or the economy goes down.  The most money I have made was after 2008 as I saw the subprime thing was crazy.  Not saying we are going to have that, just saying let's make your money go the distance.  I am also giving you advice, not trying to sell you anything or make money on anything, having you learn from some my early mistakes and learn from what I am doing right as a more seasoned investor.