Equity advice from selling house

[Ashley D Moore]

Hello I recently sold my house and got back $70,000 in equity. I found a cute little house for $87,000 I'm going to get a loan on for 15 years with a down payment of 17,000. I will live there a year then rent out.

That will still leave me with $50,000 roughly to invest in something.

Should I leave for a down payment in a year when I house hack this house I plan on renting out. Or should I buy a cheap 40 to $50,000 house here in my town outright in fair condition and I could rent out for at least 750 a month?

[Rick Albert]

Depends on your financial position and goals (short term and long term).

What makes real estate interesting is that you can leverage the property and your tenants pay the mortgage. 

With $50,000 in your market, instead of buying just one appreciating asset, why not buy 5 houses with 20% each (or where the math makes sense). Now you would have 6 appreciating assets (including your own). 30 years from now you could have 6 paid off properties. 

Stretch the money if you can and it makes sense for you.