What would you do with 423k?

[Tony Tonev]

Hi everyone, I'm relatively new to real estate investing, and I have the task of choosing where to invest 423k in 39 days, so I would love some advice!

I have one deal under my belt. I bought a 2 br condo in San Francisco in 2013 for 500k with 100k down, and I just sold it on 4/2 for 798k, with no real estate agent. I'm doing a 1031 exchange, so the net proceeds are 423k, and I also had a mortgage of 368k left, so I'll need to borrow at least that much to meet the requirements of a fully deferred exchange. The identification period ends 5/17, so I must move quickly.

Here's my latest strategy. There's 3 criteria that need to be met:

1. I must borrow at least 368k
2. I want to have cash that's unrestricted in how I spend it to use for renovations (I can't use 1031 money to renovate properties I already own)
3. I want to BRRR and force appreciation

So, here is my idea:

1. Buy one multi-family that's around 600k using non-recourse lending. I'll put 25% down, so that's 150k. 273k left. My loan requirement is taken care of.
2. Buy one 100k single-family that's rent-ready in cash and immediately refinance it, to get out 75k. 173k left.
3. Buy 2 distressed properties cash at an average of 86.5k value, and I will have 75k (37.5k each) to renovate them.

What do the experts at BP have to say, is this a good plan? 

I'm also interested in recommendations for markets and turnkey companies (already talking to a few). I'm currently researching St. Louis and Chicago, because I have family there that can help me. I'm also interested in Baltimore and Philadelphia for BRRR. Possibly working with ABC Capital, thought I've read some mixed things about them. I'm traveling long-term, so I can't be there person (except maybe for a short time) to keep an eye on things. I really need to find trustworthy boots on the ground to make this a success.

Thanks in advance,

Tony

[Account Closed]

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