Got the money.....but don't know what to do

[Kyle Davis]

Hey BP peeps.  I've been investing in real estate for about 6 years now and kinda in a weird state right now.  I have been investing in single-family homes to triplexes for the last 6 years and 2 years ago purchased a steal of a deal on a 10 plex.  I rehabbed the 10 plex, upped the rent, and now did a cash-out refinance.  The amount of cash I can pull out is around the 120k mark.  BUT I've been looking around my local market, and markets further out, and can't seem to find a slam dunk deal to put the money towards.  I'm located in central MN, and have been trying to get into Fargo ND as it's been booming for the last 8-10 years, but the purchase price for property there is so high in relation to what you can get for rent it is almost disheartening.  I feel like I want to get into bigger apartment complexes (20 units+) that are value-add type properties, but nothing is popping its head out at me.  The only other thought I had was I could if I wanted to pay off my personal mortgage on my house (which is around $750 a month) with it and be "personal debt" free (but not "business debt" free).  I always go back to the theory though that I would rather pay for a nice cash-flowing apartment complex that could pay for my mortgage, so that at the end of the day when the mortgage is paid for I still have an apartment complex as well.  

A few notes to consider as well:  In my area, most of the time you make a limited profit on your real estate investments, if not at least break even (if you try to use as much debt as possible when you acquire the properties).  So my cash-flow at the moment isn't anything spectacular.

Any insight would be appreciated.  Thanks!

[Thomas S.]

Be patient and stay where you are. There will always be another good deal coming soon.

Pay off your home mortgage and immediately apply for a interest only HELOC for the full value you can get to have at the ready.