Best use of large amount of cash

[Mark Seery]

Hello. Newbie...

I have $600,000 in cash. Just sold my primary residence.

Am i better off investing in one property and having a high % of equity or

investing in multiple properties and having a lower % of equity in each?

OR

If you had $600K in cash and nowhere to live, what would you do with the cash?

I live in San Jose CA, but not limited to investing there.

TIA

[Joe Villeneuve]

Buy the minimum equity per property and let the tenant buy the rest.  Maximize the cash flow and total property value this way.

Buying equity out of pocket (cash) doesn't save you money and doesn't gain you anything.  All you're doin is transferring the exact same dollars from free cash (your bank account) to jail (house equity)...you've gained nothing.  The way you see what your cost is on a property is what cash you put in.  The more cash you spend on a property, the more it costs YOU.  Total cost is irrelevant as long as you have positive CF since the tenant's rent pays for everything else.

If you use the $600k as a 50% DP, that means you just bought a property value worth $1.2M.  With a 5% appreciation over the next 5 years, that PV would now be $765,769.

If you use that same $600k as a 20% DP, that means you bought a property value of $3M.  With a 5% appreciation over the next 5 years, that PV would now be $3.828M.

Imagine what the difference would be in CF too.