Fun Question: what would you do? rehab? lend? rentals?

Question

Heres the situation: you just have acquired about 200k worth of cash funds, 250k in HELOC , never done a deal before, BUT have been investing much time and education into the REI world for more then 6 months. Knowing what you know now about real estate. What would be your advice to someone who is in this situation? Would you save the money and use for down payments for rehabs, while still using OPM and going through a PML or HML? Would you use the money to buy rentals right away? Would you become a PML? Obviously you may split the money up, but how would YOU do it? Love to hear some feedback on this.

Specifics: Speaking in terms of a very young adult, 21 years old. Philadelphia Market

Specifics: Speaking in terms of a very young adult, 21 years old. Philadelphia Market

John Oh · Answer

It does depend what types of real estate you would like to get into. It also depends on what you're good at. For me, I would use that money to market, as that is what I can do best with little risk involved. I think you should consider your long-term plan along with your short term goals.

For now though, I would stay away from multi-family because it seems the market is moving away from that.

-Jonathan

Joe White · Answer

I would leverage other money as much as possible. Cash is more valuable than equity in respect to that lenders will typically only lend you 70-90% of the equity you. Also, lenders want you to "have skin in the game" so downpayment, renovation money is very important.