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$100k cash will allow you to buy/own a $400k-$500k place that you can then rent-out (to cover mortgage payments!)
Just be sure you know what you’re doing (run numbers to cover payments/taxes/insurance)!
Personally-I would not invest in real estate AT THIS TIME. We are still in a housing bubble, with prices near record highs. At the same time, interest rates are the highest in quite some time-which will put downward pressure on prices in time. Remember just how much housing prices crashed after '08, and how many were upside down on their mortgages. Yes, in normal situations, it's a good move, I just question if these are normal times.
I'd open an investment account. Look at a S&P targeted index fund-VOO is good with low fees. Put it away and forget about it, maybe take a look every 5 years and enjoy compounding.
Yes, paying off high-interest loans makes sense-but without a serious amount of discipline it's easy to run those debts back up, with nothing to show for it. If you invest that money, it's a different story.
Now, one exception on the real-estate front. Do you currently own your home? If not, paying rent is a fools game if you have an alternative. If you invest that in your first, primary residence, yes it's a good move. Even if home prices do go down, at least you have a place to live.
Retired, no children I would add it to my current investment plan.
If I got this earlier in life (age 20 to 50) my first choice would be buy top technology stocks and grow that $100k until retirement. Tech stocks don't provide income but can be sold when money is needed.
Alternate choice would be to buy my first home using small portion of 100k for down payment and put rest into tech stocks.
If I had debt, I'd pay that down.
If I didn't have a home or a dependable car, I'd likely look to buy that.
If I didn't have a nest egg, I'd likely buy stocks
If I didn't have a ton of liquidity, I'd likely bolster savings or have a few running CDs.
Since I have a wife who likes nice things, I'd probably bury it in the ground.
$100k cash will allow you to buy/own a $400k-$500k place that you can then rent-out (to cover mortgage payments!)
Just be sure you know what you’re doing (run numbers to cover payments/taxes/insurance)!
Quote:
Originally Posted by G-fused
I suggest to find a piece of real estate where the 100k is enough to get you some cash flow.
You realize this isn't an option for the guy..........100K is all his money, real estate is at an all time high and if Biden pauses rents again the OP is "smoked"
Landlord plan isn't for most people, especially when they go "all in"
My buddy has 35 rentals, all single family homes/ all owned outright no debt and its a full time job for him.
He is making crazy money, its a machine at this point and he is really only on the hook for taxes/insurance.
Vacations can be tough, phone is always ringing about something. Tenants are mixed, 50% great long term people, the other 50% are complete losers (drugs/booze issues). He only had one eviction in the last 4 years and it was an alcoholic postal worker.............guy was completely nuts.
You realize this isn't an option for the guy..........100K is all his money, real estate is at an all time high and if Biden pauses rents again the OP is "smoked"
Landlord plan isn't for most people, especially when they go "all in"
My buddy has 35 rentals, all single family homes/ all owned outright no debt and its a full time job for him.
He is making crazy money, its a machine at this point and he is really only on the hook for taxes/insurance.
Vacations can be tough, phone is always ringing about something. Tenants are mixed, 50% great long term people, the other 50% are complete losers (drugs/booze issues). He only had one eviction in the last 4 years and it was an alcoholic postal worker.............guy was completely nuts.
Hello....Newman
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