Best way to invest 60-70K for passive income??

[Gustavo Juarez]

Hello all, my goal is to achieve financial independence through passive income and I am very excited to begin investing in real estate.

I am in the middle of a cash out refi on my only rental property and I expect to pull out around 60-70K.

What is my best/realistic option at making the best use of this capital?

I am completely new to real estate investing and would appreciate any pointers from experienced investors.

Thank you!!

PS I live in Milwaukee, WI and the market is very hot right now. Duplexes in my area go from 75-150K and I would like to invest in more of them or even triplexes or fourplexes.

[Aseel Yerunkar]

@Gustavo Juarez 
Really depends on a lot of personal goals, and risk tolerance.

You have a couple options :

• If you are okay with taking on a challenge with a little more risk you can start trying to grow that capital stash even more and do an entry level flip.
• If you want something less risky but still want your money to not be immediately/fully tied up learn the ins and outs of the BRRRR strategy. Depending on your market you may or may not be able to do this for cashflow but it will still allow you to have a faster velocity of money. You might not be able to get all your money out the deal but goal is to acquire an investment property with much less than your traditional 20% down loan at the end after you refi the property.
• If you want something significantly more passive and don't mind letting your money sit in a deal for a long while you can simply buy a turnkey rental property.

• You can also House Hack. If you do not already own a house I, personally, would make this the first priority. It's very feasabile to house hack in most markets and greatly reduce you month to month living expenses while investing in an appreciating asset. In many markets you can essentially live for free and then some.
• If you do already house hack, I would  again personally take a portion of that capital and invest it in a rental/brrrr, and take the rest and flip a house and keep getting more capital to invest in more rentals.

Hope that helps! Feel free to hit me up for any questions.