What would you do If you were investing $80,000

[Chris Schoonhoven]

I'd imagine there's a board with this, or a similar amount already but I couldn't find it... My question is, if you had 80-100K to invest where would you prefer to start? Numerous SFH, just 1 SFH, multi-family, apartment property (over 4 units), notes, etc.

Thanks!

[David Thompson]

Agree w/Nick, if you are accredited, with that money, you could easily get into syndications at that level and participate in large apartments where you get scale and forced appreciation.  The latter is very important now that we are in the longer end of the cycle.  Trying to find this on your own in a competitive market w/out a ton of experience, resources and contacts is a disadvantage and increases your risk.  Secondly. I advocate by investing w/the experts who are in the right markets and leveraging the right model (B/C value add) you can do very well. Good syndicates should also keep you well informed and answer any question you have hence you can get a good education as well.  I call this the earn and learn concept.  Most syndications have a min of $50K so you could parlay that into a couple different syndications and geographically diversify yourself.  

Large apartments have had a good run but everything we learn and read about is that the trend of renter demand should continue w/millennials and boomers.  Given higher SF home prices, we will continue to see strong demand and little supply of B/C renovated apts (once value add is in place) that will continue to offer a very affordable and updated living for those seeking value living. Differences in rental rates from Class A (new construction that you see going up around you) and Class B after renovations is easily $1K / month.  If economy softens, class B holds up like a rock while class A will face headwinds of over supply at some point and reduced rates to keep folks in their buildings.  We saw this in Houston during the oil downturn w/our partner (B/C class) who's occupancy held up while class A fell off the cliff.  Need another reason, during 2008, residential mortgage delinquency hit 5% nationwide while MF was 1%.  Hands down, you should take a serious look at syndication, MF large apts in growth markets (pop/jobs growing > natl averages, diversified job base), projects that are value add only w/sponsors who practice conservative underwriting and have a solid track record of delivering investor value.