What option is best now: LTR, STR or CD

[Maggie Kouzov]

Hi David, Maggie from Chicago area. I’ve been listing to your show for a year now. Great Show! In November 2022 we got our first long term condo which is producing $170 monthly positive cash with 7.4% rate (investment loan) . Our goal this year is 2-3 more doors. It seems like we can’t make up our minds what kind of real estate to do next. I always get into this analysis paralysis mode and going in circles. We have $500k cash that we can put into down payment plus another $100k to be used as security if something bad happens. I have a good W2 job and approved for $1.5M for investment property. These are the options we are considering and was hoping if you were in our shoes what would you do with that amount of money in the current market conditions.  OPTION 1: Short Term Rental in the Smoky Mountains $1.5M with good view and established rental history, making $3,500 monthly cash flow (if this is possible in the current market).  OPTION 2: Long Term in the area 4-plex, using the B.R.R.R.R method or not with about $1,000 monthly cash flow.  OPTION 3: Long Term in the area 5+ units BUT this put you in commercial loan (don't know anything about) maybe paying it cash? We are looking at one now for $825k - 6 units $98k rental income $58k NOI - $4,800 monthly. OPTION 4: Put the cash in CD – You can get 5.15% for one year. On $500k = $25,750 or $2,145 risk free -OR- 6 months CD for 5.05% = 12,470. Thank you for your time!