What would you do with $50k?

[Samuel Bavido]

Good morning good people of BP,

In 2015 I bought a single family rental outside of Tulsa, OK. It’s been a decent property, but I’ve since moved to Wisconsin and I’m not 100% happy with my property manager. On top of that, there’s been some appreciation; with a bit of updating to the kitchen and bathrooms, we’ve got comps showing we can sell for a nice little profit. We have a renter in there until the end of May 2019, so I’m hoping to get it updated in June, and on the market in July. Our target profit cash back (after closing costs and realtor and all that) is $50k.

So, what would you do with $50k? My initial thought is a 1031 to some properties in Wausau, where I’m already getting a nice return on a duplex I bought last year.

What about using that money as my starting seed money for unlimited BRRRs?

Or look for a seller who will carry a 10% note, allowing me to purchase $500k of real estate? In this area, that could be 10 cash flowing units, allowing me to roll that cashflow into more purchases over the next few years.

Or do I do some heavy market analysis and throw that money straight into the path of progress, planning to get further appreciation and pull out more money in a few years?

It seems there are quite a few good options, but I would certainly be interested in knowing what you think the BEST option is.

[Scott Schultz]

A couple things, I would work with the prospective 1031 Agent and your accountant to see exactly what to do, sometimes on small profit you are better off with the cash and pay the tax, than be forced into a marginal deal because of timelines. 

Central WI can be a great Cash Flow market, I have most of my stuff further North, but work with ABC Rental Management out of Wausau to manage my properties, if you need a great PM with good rates, check them out.