24 with 100k on hand looking to invest in Sacramento area (Folsom

[John Collins]

I’m a 24 year old living in Folsom at my parents house. Because of this I have a monthly savings Tate of 85% on an 80k salary. I plan to live at my parents house for another year or two.

I now have 100k on hand and was thinking of buying a house in the Folsom area and renting it out.

Is this a good idea?

100k is a 20% down payment on a 500k house, and on Zillow a 500k house has a mortgage of 2.4k with a estimated renting price of 2.6k. Is it worth doing something like this for the appreciation and rent surplus?

Is somewhere like El Dorado area better to invest it?

[Ley Nezifort]

@John Collins if I had $100K and lived at my parents house, I'd totally use that money to BRRRR with in a cheaper market. Reason is, when you BRRRR that same $100K can be recapture (the Refinance part) so you can then repeat the same process.

I'd do enough BRRRR until my total monthly cash flow exceeds my monthly income from my W2, and then I'd maybe think about parking that $100K by acquiring some properties (not one) with 20% Down.

PS: I’m 24 as well, and I’m strictly a cash flow investor, so you can definitely PM me if you want to bounce some ideas.