140k to 1mill. How do I get there?

[Nic A.]

Alright team need some advice on whats next. 34 years old, flipped 3 houses so far all profitable and have saved a total of 140k in cash. 80k on an unused HELOC available. Goal is to get to 1 million by 45 years old so basically 10 years and then I will be able to buy an apartment complex and retire.

I am off to a good start. I keep my personal overhead very low and intend to continue that. Properties east of the mississippi seem to have better returns than compared with where I am at in AZ. Thoughts?

[Jon Holdman]

Are you wanting to grow that $140K to a million in 11 years with no additions?  You need to be making 20% returns to do that, and that is a VERY TOUGH target.  OTOH, if you can contribute $78K a year you'll be there with 0% returns.  So, realistically, you need a combination.  Good investments plus ongoing savings being invested toward your goal.

You don't need a million bucks to buy an apartment building. You could buy a small one with what you have.  Though, as you've deduced, perhaps not in your area.  Personally I'm leery of investing at a distance because there are times when you need to get your eyes on the property.  I know people do it and have success, but I also see too many horror stories posted here for my liking.  I consider doing it if I could find a large enough property to justify having my own manager.

I suspect you're asking what you can invest in that will generate those kind of returns.   IDK.  I wish I did.  I'd be investing it in.  Be careful with folks offering high risk, high return investments.  "High risk" in investing, means "a wide range of possible returns".  "Low risk" means a narrow range of possible returns, like bank CDs or treasuries.  The return on those investments is low, but you're nearly 100% guaranteed that you will get the return and your principal is safe.  High risk investments are often promoted using the best possible return.  You have to weigh that against the odds of actually getting that return and the safety of your principal.  I have some investments that have done quite while, but also some that had returns that were far, far below zero.