How to use 10k to create 100k per year

[Karen Varley]

If I had 10k to spend right now, where should I spend it to get started on cresting 100k per year? There are condos here in Phoenix under 100k or duplexes at 250k. Any insight is greatly appreciated.

[Darius Ogloza]

My advice is to grow your capital through employment/side jobs before embarking on an investment. There is nothing riskier than investing without sufficient reserve capital to cover unexpected bumps in the road. Even if you could put $3,000 down on a $100,000 condo with an FHA loan, you would need a couple thousand to close and $5,000 in reserve cash is not going to go very far in case there is an unexpected HOA assessment or necessary major repair or tenant vacancy that lasts a couple of months. Hate to sound like a downer but I hate to see people lose their hard-earned money in this way.