What to do with $50,000 in Kentucky?

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@Phil Van DykeWith an ultimate goal of building passive income, if I just suddenly acquired $50,000 I would use it as a down payment for a couple of SFR's that I can renovate, build in some equity, rent for cashflow, then refinance in 6-12 months and do it all over again (what @Brandon Turner calls the BRRRR strategy). This is exactly the strategy I already employ. I most recently put $15k down on a foreclosure in Jeffersonville, IN (just across the river from Louisville) that I acquired for $45k purchase price, then put another $20k in to renovate. The estimate ARV (after-repair value) is $120k, and I have tenants moving in today paying $1050/mo. which should provide about $350/mo. in cashflow after all expenses. I will refinance later this year and roll the funds into the next project. Do you have any investing or construction experience/knowledge?

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@Phil Van Dyke - I'm hoping that in the past two months that you have decided to pull the trigger on at least one of these houses. Having enough experience with rehabs to know that repair budgets are often merely a starting point rather than a solid expense, I'd caution you to get several rehab estimates and determine if your budget can handle the highest on both at the same time. If that's not feasible, the smartest move is to go one at a time or finance. What did you decide to do and how's it going?

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Ok so I have a new problem. I have found two homes! Both I can get under the $50,000 mark. One will need some small repairs with equity of around $30-40k. The other needs more repairs with about $10-20k equity. Basically I can take the $50,000 and fix them both up. Now the problem is this... Would it be wise to buy both, fix them, and have 0$ cash or buy one or finance. Keep in mind this is my first deal which is why I guess I'm so hesitant. My gut is telling me to go all in and ride the wave haha. I appreciate everyone's opinion. I'm just new and trying to play smart.

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Jay Leisten keep me updated with your success. I think it may be route I go as well.

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I'm using that same amount to do an all cash rehab that should cash flow 1k free and clear minis taxes and insurance. I may BRRR it after a few months to get the cash out for another similar project. With a 4-5 year pay back I'm petty content to not worry about leveraging it.

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Thanks @Tyler Jahnke I'm going to look at the BRRR approach and weigh my options. I appreciate your input.

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@Dan Close thanks for your info. At first, I had thought about trying to find a home cheap enough to do everything cash. But, I didn't know if that was a good idea. My background in wholesaling helps with deal analysis. Harrodsburg has a great, untapped market. I'll keep you updated.

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@Phil Van Dyke - Very good options here with $50K cash. I will be looking to implement the BRRRR strategy @Brad Noe suggested for my next investment to expand my portfolio faster with less of my out of pocket money.I've also used the strategy @Dan Close brought up by buying a property all cash free and clear. Decide what's best for you and determine how much risk you're willing to take. Obviously, if you use this last strategy you're "putting all of your eggs in one basket."-Tyler

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Hey Phil, its a good problem to have :). I agree with everyone above but I would tweak it a bit. Instead of using all or part of the 50K as down payment I would look for a deal where the post rehab cost is at or below 50K and pay cash. So a house that cost 40K and needs 10K of rehab cost for example. Being able to pay cash and close quick goes a long way and should end up with a much better deal then anyone financing. This disadvantage is when you go to pull your cash back out banks tend to require a higher LTV ratio on the cash out refi then the do on an initial purchase. Think 75% instead of 85%. If you buy right and i'm sure you do since you wholesale it should almost be a non issue for you. Good luck, and I would love to hear how the market is in Harrodsburg if you are inclined to share the deal you end up making.

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Thank you both. I will check into Brandon's BRRR strategy. And yes it's cash. I was thinking of purchasing a SFR for around 15,000 and flipping it. But I am new to buy and hold so I wanted opinions. I have just been wholesaling previously.