100K Maybe 200K Cash to Invest

[Suzette Lowery]

I have been reading for a while and I am ready to take the plunge, but I have several options and dont know which to chose. I have 100K in cash and own my current home with no mortgage, value about 150K. I am closing on a new home on Monday, financed for 400K which will be my new home and will use my current home as a rental. These are my options.

Option 1
Buy auctioned or foreclosed homes for cash, about 70K and sell it for 100K and repeat aiming for 2 sales a year just starting and depending on my success 4 sales per year. I still have a lot to learn about the capital gain taxes on doing this, but I will research in details if I chose this option.

Option 2
Buy another home cash with my 100K and have two rental homes free and clear of a mortgage to pay for my new home.

Option 3
Get a HELOC or mortgage on my current home and use that along with my 100K to buy two homes cash, and have now have three rental; one with a mortgage or HELOC loan and two free and clear.

Option 4
Use my 100K as downpayment for 5 single family homes, with a mortgage on all five and continue to let my current home off-set the mortgage on my new home.

Option 5
Use my 100K, rental income from my current home and future earnings from my day job to pay off my new home in about 5 years and continue to live without taking risk, but be debt free.