$100k to invest, second rental home?

[Farooq K.]

$100k to invest.

I am trying to find a way to lower taxable income if possible from W2, I currently have 1 rental.
I was thinking of getting another.

Was looking for general advice.
Should I get 1 rental with the 100k, any certain prices I should target or locations?
I am in Arizona/Gilbert area but the properties here are like min 500k so seems hard to find a good property.
I was thinking buying a townhome at one point, would continue to find deductions I can use against taxable income.
If you have other ideas let me know.

[Justine Phillipson]

Hi Farooq, 

100k is more than enough to get a great rental property in AZ. I recommend finding a property that needs some updating, and not not using conventional mortgage- but rather a hard-money loan. That way you only need about 10-20% for the down payment and the hard-money lender will cover the rest AND they will cover the cost of repairs. 

After the repairs are done, I would recommend refinancing into a traditional mortgage and paying off the hard-money loan. When you refinance, you can cash out the equity you created and roll it into your next investment property. This is the BRRRR method that investors use to be able to scale while using the least amount of their own money out of pocket.

I specialize in investment property sales in Arizona. If you're interested in discussing more please send me a message. I would love to chat further!