$60k in Cash Looking to Invest

[Ali MirRasekhian]

Hello all,

I've been saving my commission checks from my W2 job and have been able to save up about $60k. I've been analyzing properties in Memphis around $100k with an ARV in the $135-$150k range. Initially I was looking to BRRRR some of these properties but with current rates for hard money and the refi any cashflow is gone, even with leaving more money in the deal.

Would love to get any thoughts or recommendations from the community.

I've been analyzing properties for a while and am ready to get in the game so always happy to connect with anyone in the mid-TN area.

Thanks

[Mindy Nicol]

Hi Ali,

Have you looked into DSCR loans? Generally they want 30% down, so with your cash you'd be looking at something around $220K or so. I am not sure what that will get you in Memphis, but here in NE FL you could get something that might need a little cosmetics, not a major fixer.

If you do get a very cheap house you'll find the rehab and unexpected costs could leave you with something that is unrentable or has issues all the time. The reason I suggest this loan is it would get you in a better class of property, better area perhaps, therefore better tenants. Given you have a W2 I'd have your loan officer run the numbers on both DSCR and Conventional and see what is better for you. Just my 2 cents!

Mindy