Starting With $100K, but still have a mortgage with 1% equity

[Allen Brouwer]

OK BP. I've been reading and listening to the podcast and I'm ready to make a move.

Background: Wife purchased a home last year (before we were engaged & married) with 0% down with Agricultural Loan plan. We still owe roughly $240k on our home.

I have about $100k in a trust that I can use for our home or to purchase assets. ie. shares, investments, RE, etc.

The question that I have is this..

How do I leverage this $100k the best way possible?

We have been attending Tax Auctions at the County Court House to learn the process and find out what is needed to buy these foreclosed and distressed properties. They are "cash only" deals with zero contingencies allowed. Title Search MUST be done prior to bidding.

We're targeting small single families that need some work. Ones we believe will still stay within our Cash limit of $100k.

There are some properties we know we can move on, if we have more capital.. but even still... I'm quite nervous to put all my eggs in one basket (property) and tie up all my liquidity and potentially lose some of it.

So with this said, what makes sense?

- Buy, fix, and hold(rent) with a refi to purchase second, third, fourth?

- Buy, fix & flip.. 2, 3, 4 times then do the buy and hold?

- Put the $100K into our home and HELOC a down payment (this would take the short sales out of the equation)

I'm doing my best to try and wrap my head around the best strategy to take.. just need some help and guidance.

Thanks.