Need some advice on what to do with the cash that i have!

[Austin Landry]

I just sold my house and made 120k. I would like to invest into some rental property and i just dont know which is the best route. I currently have two single home rentals and i have to refinance one of them. So im thinking i have about 30k in equity in one of them. Should i take that money as well to get more property? What are yalls thoughts? Should i buy a few houses or a small apartment building? Should i pay cash or finance all that i can? Please HELP!

[Jeff V.]

OP - Being you are asking the question, I would assume that you are new to real estate investing.  I would advise to put the money into a safe investment for 1 year such as bonds or something that you are comfortable with that is low risk.

Then take that year to educate yourself on the different avenues of investing in real estate.  You should decide based on your studies and individual goals what form of real estate investing that matches your strengths, skill level, education level and goals.

An example would be...  If you want to invest into flips, but don't have the team, experience, skill or time you may decide that your best bet is to partner with someone with those assets and has a good track record and be a private money partner.  You could then go along on every phase of the project and learn those skills along side someone who is well versed to minimize your mistakes and make money in the meantime.

Once you do this a few times, you could then use the knowledge, education, skill to put together your own team and fund your own deals to strike out on your own following the same established process.

Another option might be you like the idea of a monthly paycheck, but don't want the hassle of tenants.  You could opt to invest in mortgage notes, which would provide a stream of income and growth of your seed capital.

The main thing is, you need the education before you put your money at risk, OR to partner up with someone who has the education and track record.  If not then your money will soon part from you without an education.

This is why I make the suggestion to put into a safe investment for 1 year while you read up on the various strategies and methods.  You will never know everything, but if you learn to avoid 1 or 2 large mistakes then that education has paid for itself.

Just my 2 cents.

Years ago, I had a large sum of capital come into my hands only to squander it away quickly because I didn't have the financial education on how to properly deploy that capital and let it work for me.  Don't fall prey to the same thing and invest foolishly because your in a hurry to make some money.

I hope this helps you in making a decision.  Good Luck with your investing and future endeavors.

Jeff V