25k cash best invest advice Rentals or More Education for more income

Hello Forum

Have 25k cash I am a women with great credit, no debt, part-time job, in nyc

Not sure if I should use the money to purchase a rental property (boarding home for vets)
for 25k through HUD or one of you investors
in Maryland or PA or somewhere were house a cheap

for passive income and continue to use build a
portfolio of additional properties as a source of income

or spend the money on college tuition for better job offers Any suggestion.
not really interested in working for someone else Thanks for your time and attention

Well, there’s not enough information to go on, but that never stopped me weighing in on other people’s problems…

Let’s see…

Blow $45k on something that isn’t guaranteed to produce anything, and especially depends on YOU to do something to make things happen anyway…


Invest $45k in a cash-flowing rooming house, that will push off more as each year passes; allows your renters to pay back your $45k investment, and pay off your loans over time…

Hmmm. What-ev-er should you do?

I think it’s wiser to invest the money for cash flow, and depend on other’s work, not yours. Then take the cash flow and buy an education. Why not?

If you got some education, great. But all you really have is a sheet of paper saying so. What’s that really worth?

After you’ve given the school this money, are they guaranteeing that you’ll have a job? No? And they won’t refund the money if you can’t find a job? No? And you still have to sell yourself, and get experience, and spend years proving you can do the job anyway? Well, why not do that without spending $45k on a sheet of paper.

Sheets of paper usually just mean you can finish a task on time. Yay for you.

You can already do ‘that,’ can’t you? I mean come on.

You’ll have to weigh the income potential from earning that piece of paper, versus the potential income you’ll get from an investment property. Again taking into consideration that one income is ‘actively’ generated, and the other is ‘passively’ generated. These are not the same things. Just saying


I am glad u responded you always give good advice
okay cash flow is the way to go
a better question…
I am a renter in nyc should i

use the money for my boarding house idea for cash flow/equity etc

or buy a home for myself for 45k ito avoid paying rent or high rent

or wait for the boarding house business to kick in which will give me a better
chance at a purchasing a much better house

thank you for your time and attention

Those are great questions.

The answer involves your goals and objectives, and timing.

BTW, I misunderstood. I now understand you have $25K, to burn, not $45K.

I think you can kill several birds with one stone, if you’re willing to be creative and open minded. That is, create equity, cash flow, and a place of your own to live, all at the same time.

For example, you find a motivated four-plex owner near where you would prefer to live. He wants out. He doesn’t know how to manage property, and has no equity, and has two vacancies, and is sucking drain water financially.

You offer him $25,000 as a down payment, and offer to take over his first mortgage of $225,000, and pay him off in ten years. He says, “Great!”

[ Two years later, you discover that some four-plex sellers will just let you take over their loans without a down payment. You kick yourself. ]

Meantime, you take over the payments on the four-plex, you get the deed, you move into one of the vacant units, and quickly rent the remaining vacant unit. Now, you own the place you live in, and your tenants help pay your bills, and you’ve got 100% occupancy.

In six months, after you’ve got a lay of the land, you determine that the rents are about $150/mo low, and so you raise the rents $100/mo on each remaining unit, which brings in another $300/mo, which now covers your portion of the mortgage 100%.

If three years, the rents will have climbed another $600/mo, and there is now $900/mo in cash-flow.

You now offer another motivated four-plex owner a down payment secured by your current four-plex, instead of cash, and do the exact same thing you did with the first one. Move in, raise the rents, and in three years, you now own eight, cash-flowing units.

Then things get interesting.

You start seeing 10-unit and 15-unit buildings in the same situation as the four-plexes you were buying, and you begin making creative financing offers to buy those, from owners that have no business in the multifamily business, and you trade down payments, secured by other properties for ownership, and keep doing this until you own enough units that your income exceeds anything you’re making at your j.o.b., and then literally opportunities seem to come out of nowhere, as other owners want to sell to you, agents bring you sweet deals, and you continue weighing options on deals that make total sense, using creative financing techniques.

Does this seem like pie in the sky? Apart from buying four-plexes, this is exactly how I started.

I jumped from ghetto houses into seller financed multifamily units.

I did have an advantage.

I had extensive property management experience, and I loved managing people, which is the essence of property management, and a fair must for successful real estate investing anyway.

I’m sure there’s successful real estate investors that hate people, but I don’t know them.

I could say more, but suggest that if you can think bigger, think ‘leverage’, think creative financing, and think further ahead, you’ll turn that first $25k in to a small gold mine in no time.

Of course, the devil’s in the details, but that’s why I also suggest buying training. Robert Allen’s book “No Down Payment Formulas” and anything you can find from the late Barney Zick on options and negotiations would be a start, and certainly John T. Reed’s book called “How to Manage Residential Property for Maximum Cash Flow” would be a must. “Subject to” training would be extremely helpful.

That’ll get you thinking. And yes, this is more about cash flow, and less about equity build up. Equity buildup comes naturally, but cash flow needs to be forced.

Equity investing is for people who like to park their money in pretty properties, and are delighted with 4% returns. Maybe later, but not with only $25k to work with.

That why i love this county :beer
Great ideas.

Thank you so much
Your The BEST :smile


How old are you?

Just to add. When I was 20, I bought my first duplex and was in University. I lived in one apartment and the other apartment was a three bedroom that I rented out individually as rooms to three single people for more income. I did well and added more properties to my portfolio. There’s no reason why you can’t do both–go to university (even if it’s just part-time) and invest in real estate.

In university, I would recommend getting into a co-op work program as soon as practical (one mistake I made in university–which I would have done if I had to do it all over again). They can put you into 1-2 term positions you’d never get into applying directly.

I wouldn’t recommend renting to vets as a beginner. I’ve been down that road before and some may have army related mental conditions that are tough to deal with that may be hard to screen for initially (and I’m a big guy). I would stick to people who have long term verifiable jobs and good credit.

Best Short-Term Investments For Your Money:

  1. Online Savings Account
  2. Money Market Account
  3. Investments for your Education
    1. Short-Term Bond Funds and ETFs
  4. 5-Year Treasury Inflation-Protected Securities
  5. Municipal Bonds and Corporate Bonds
  6. Pay Off High-Interest Debt

Advice of how to spend 25k in real estate.

  1. Search the forums for information and education. I wouldn’t spend 25k on more education, learn as you go.
  2. Consider using the 25k as a down payment on a multiplex, rent out the other units for biggest cash flow. Consider FHA financing as this won’t require as much down as conventional financing.
  3. Look into buying tax certificates, cheap foreclosures or tax deeds. You might need a little more cash for repairs.

Hope this helps!

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House hack a small multifamily. Live in one of the units and rent the others to tenants. The rent from tenants can pay for part or all of your mortgage. Maybe have a little bit of positive cash flow after accounting for expenses. Since you are occupying one of the units, you can get a mortgage with low money down.

narrow path might have a good idea for you

This was very helpful post. Thanks for asking the question and thanks for this response. I know a lot of people with college degrees that does not give them the ROI that rental/investement properties give.