What would you do with $50,000!?

[Amber Straub]

Hey guys my name is Amber and I’m new here to Bigger Pockets. I’m a new real estate investor who has successfully house hacked my first duplex in Naples Florida and I’m hungry for more. 

I’m coming here to look for answers. 

I have $50,000 CASH, $100k equity on an FHA locked in at 2.4% and am able to get traditional financing with W2 income as an intensive care registered nurse.

There are SO many options with real estate investing! Wholesaling, flip, BRRRR, house hack, short term rentals AIRBNB etc. I know this is the path to success but I need to be decisional.

I obviously don’t want to refi on my 2.4%, but I want to purchase my next property. 

My question is, what would you do with $50k and $100 equity on a 2.4% FHA??

I’m seeking expert advice! One of my biggest goals is to move out of my current duplex and into another property because I’m not fond of the neighborhood. Naples FL is VERY high end market. 

Duplex is 15% down, single family would be 5% but then I’m looking at a mortgage and I’m trying to make money not get a $4000/month mortgage payment, currently I do not pay for living expenses. 

I have considered doing out state investing in Ohio and am in fact pre-approved, but the idea of losing my cash for $200 a month is not appealing. I don't have enough cash to BRRRR.

I feel like I’m missing something and this next move with be my make or break. Any advice is appreciated. 

Thanks in advance! 

Amber 

[Scott Trench]

Welcome to BiggerPockets, @Amber Straub! 

Congratulations on what sounds like a great house-hack and a great start to your wealth building journey. 

First, I'd be interested to know what your monthly accumulation of cash looks like. Are you stockpiling $1,000 per month? $2,000 per month? $5,000 per month? How long will it take you to accumulate another $50,000 in cash? This affects the cadence at which you can invest more than anything else, in my opinion. Knowing that, you will be able to zoom out 3-5 years and envision what your potfolio might look like and back into something reasonable from there. 

Second, I agree that you want to leave that 2.4% mortgage in place. So, unless you want to sell out entirely, I think you are looking at a HELOC or 2nd mortgage as your way to harness some of that $100,000 in equity.

Third, I think that the $50,000 in cash can be used either to invest out of state (or elsewhere in Florida - many investors are moving money INTO Florida, even as you are considering moving money OUT. Perhaps there are opportunities within a 90 minute drive of where you live?)

Fourth, I think you can serial house-hack. Not knowing the specifics of your market, and perhaps being Naive about Naples, it would appear to me as an outsider like this or a neighboring town might be ideal for a STR house-hack. This might allow you to generate signficant cash flow. If the stars align, this might allow you to get the best of several worlds - a larger, nicer asset that is more meaningful to your overall financial position, a great owner-occupied loan with a low down payment, and a potential for significant cash flow.