Have $100,000 to invest, appreciate advice

General Real Estate Investing
1

All – thanks in advance for any input.

I am in the fortunate position of having $100,000 in a money market account that I am contemplating using for a real estate investment (or several).

Briefly on me so you know where I’m coming from: I’ve recently moved overseas (to Germany) where I’ll be for the next couple of years. Because I sold my house in the US and get a decent expat package I’ve got a good amount of cash to invest. Most I have put in the market (index funds mainly), but I’ve left myself $100K to invest in real estate. My thought is to pick up a couple of rental properties, however, I have several questions.

Can I buy a property from over here? (I know I can, but is it advisable?) It would basically mean buying sight unseen and really having a trustworthy real estate agent and property manager. Can this be done?

Next is what type of rental: by that I mean speculative (less than break even per month, but high appreciating market) or one with positive cash flow from the beginning? Right now I am thinking about buying one of each: one in an appreciating area with a negative cash flow of a couple hundred and one in another area with a positive cash flow of a couple hundred. As the two will more or less wash – the impact on my cash flow will theoretically be minimal.

So, next questions: where to buy and how to find the right properties? In terms of more speculative properties, I’ve thought about Las Vegas, Naples, FL, or perhaps Hawaii. Any comments on these or other suggestions for appreciating markets?

In terms of markets where I could achieve positive cash flow from day one: I have no idea and would welcome any suggestions.

In case it helps, I do have some familiarity with: Northern Virginia, SE Michigan, and Atlanta. Also I have family in SC, so could be interested in Savannah/Hilton Head area/ Charleston.

If anybody has thoughts on the above I would truly welcome the advice. If you’d rather PM me that would be great as well.

Thanks, Corey

2

…

3

I agree, I have a nice large starting capital but my goal is to use as little as possible. Blowing it all on one property seems like a waste; if you’re going to do that I would work the stock market. The whole glory behind REI is the OPM factor (other people’s money). The best way to maximize your ability to get OPM is to keep that 100k sitting nice and pretty in your bank account.

This is just MY opinion of course.

4

…

5

whats the hurry? is real estate going out of fashion?

if you dont have 1 month’s cash reserve for each unit you have, you’re under capitalized. thats the best way to go broke.

why don’t you run your property for 3-4 months and see if
the tenants pay you on time and the A/C doesn’t need fixing.

6

I couldn’t invest in real estate in another state. We have always managed our own places and have done our own repairs. It would be too stressful to watch over the management Co. As far as repairs, they don’t care how much something will cost, it’s not their money. Will they get you a few bids first so you can approve it? I just wouldn’t want to go there.

If I were you, I would put it in a jumbo CD. Interest rates are going up and you would have no stress.

7

Perhaps, until you get back to the states, you ought to look into investing in a REIT. Or even becoming a private money lender.

Just a thought. :slight_smile:

8

Thanks for the replies - I am now looking at land as a possibility also.

9

I personally wouldn’t do land as an investment.

10

OK - what about pre-construction (Florida)?