What to do with 35k?

[Nick Rudolph]

I live in southern California, have $35k saved, and zero debt. I am currently renting a room. My current thoughts are to house hack and rent out the rooms in a single family, get a duplex and house hack and rent out the other unit, or to purchase a inexpensive house in another state and use that to begin my rental portfolio. Please let me know what your recommendations as to what I should do with my $35k and why? Thank you in advance.

[Seth Rouch]

Nick,

I’ve found (through making quick decisions in the past) that having cash is huge. Investing your money in real estate can have great pay out, if done wisely. I will say that my personal opinion would be to point you toward a 2-4 unit to start out. (Banks see these as an investment property vs. single family and will count 75% of the rent toward the mortgage which helps for further investing as your DTI can grow with investments.) it does depend on your long term and short term goals. Again, don’t rush yourself. Best of luck!