The $1.25 Million question - Seriously blessed but scarred

[Juan Salazar]

Ok. I would say a little planning and LOTS of luck allowed me to invest in Austin between 2006 and 2011. I am in the process of selling my 1 remaining lots and 1 SFR and will net a little over $1.25M in cash. I feel very blessed, but now scared as to what should I do next with that equity.

I've invested previously (cash purchases - about $500K) into 2 STR in the College Station, Texas area (Close to the University), and been happy with the performance - Net Cash Flow of about $15K annually per each, and was thinking of doing some more of these, but the cities are starting to come up with crazy ordinances on STR.

So, what would you do seriously if you've or are in a better position that I am. I was told to look at commercial, but I have never done it....

Most people (not REI) go the easy route and say "buy stocks, hold for dividends", but as we know, those do not appreciate or depreslciate 😉.

Thank you in advance for your help...

[Lydia R.]

@Juan Salazar First of all, congrats man! Im in Austin and I wish I had bought something, anything between 2006 and 2011. Even 2015! I think your question is a little too broad. Theres a million things you could do with that money, but what are your goals. You should have long term financial goals that you are working to accomplish and that will help guide your decision-making. Otherwise you are just a guy in a canoe with one paddle. If you are looking for passive income/cashflow then you should be looking at and evaluating rental markets or other more STR friendly markets. Ive heard good things about Waco...but Ive never spent any time there so I cant really offer an opinion. If you want to scale up into something bigger you can invest in commercial real estate projects. My boyfriend owns a private equity company that invests in commercial real estate and they just closed on a medical building site in Lakeway and have a few more Austin area projects coming down the pipeline. I'd be happy to put you in touch if you were interested in going the commercial route.

If you are wanting to be a more active investor you could look at developing single family homes or multifamily properties. Theres a very interesting concept that I’ve spent some time researching, the build-to-rent. Its getting more and more common. New builds that are not sold at completion they are rented instead and then sold to a large entity looking for steady cashflow and decent returns.

Like I said, the possibilities are endless. Decide what you want, decide what your goals are and let those goals guide your next steps! Congrats again!