Many investors who are in a similar position in my market (another HCOL/tenant friendly area) choose 1 of 3 options.1.

Or you might choose to hire a handyman to do some work and manage them more closely than you would a more proficient contractor.

Choose a HELOC if the property is appreciating and cash flow remains strong, or a 1031 if you want to diversify or upgrade assets.This post does not create a CPA-Client relationship.

Quote from @Peter Stewart: A lot of the answer depends on your income, how long it took you to save up that money, and what your risk tolerance is. 

The cool thing is you have multiple strategys and just because you choose one, does not mean you cannot switch to another one - maybe one fits your short term goals and another one helps down the line with long term goals.

The city is rapidly growing in terms of population and job market with so many major companies choosing to move and develop here like Intel, Google, Amazon, etc.

what made you choose it over BRRR, or fix n flip?

If you’re referring to the “newbies” with $10k to their name that watch a video by Pace and get excited and pay for joining, go out with their last $5k and do a sub to with a “desperate” homeowner without revealing all the possible consequences (because they are unaware of the consequences through lack of experience and lack of knowledge and or choose not to inform the seller) then I agree, it’s probably going to turn out badly for all concerned.If on the other hand you’re referring to a seasoned investor with excellent credit, significant cash reserves, who wants to add a property to their portfolio without going through loan qualifying, and can pay enough to give the seller “walking away” money because of the low existing interest rates and or, and is dealing with a informed seller, then I find nothing wrong or negative about the transaction.  

Just depends on your risk tolerance with the fixed or variable rate preference and which makes more sense for cash flow. 

When it comes to structuring your real estate business, choosing between an LLC and an S-Corp can feel like a big decision—and for good reason.