What Would Your Plan of Action Be If....

[Jay Neaves]

I guess this is aimed at investors in Michigan, but I'd be interested to hear from anyone in any state...

If you had $100K that you didn't anticipate having, let's say a win on a scratch off or something, and you wanted to invest it in Michigan real estate for the future, what would you do?

[Michael Seeker]

This depends on your ability/desire for different things.

I like flipping and being a landlord, so I would dedicate about 50-60K to acquiring rentals (get some passive income coming in) and the other 40-50K towards a flip or two (work on a big pay-day so you can do it all again).

A split approach allows you to focus on both the short-term and long-term (short-term = flips, long-term = rentals).

I'm not uber familiar with MI real estate, but my impression is that it is a little more depressed than a lot of other states/areas. If that is the case (and I know it will vary by area), I would probably try to acquire several single family homes and rent them out. This will give you some cash-flow as well as a potential longer-term upside. It will also be a lot easier to liquidate all or part of these properties if/when you decide you want to.

-Mike