What should I do with 200K?

[jfpen]

@sbgradinnb post:20

Good points.

And also I understand the strategy with diversifying into different cities/states, but that will make it difficult to manage right?

I mean if you have 4 or 5 properties in a certain area, all you need to do is find 1 decent management company and you are set.

For a newbie, I would follow Bluemoon’s advice. Find out what works in your area and do that. The people who are making money in REI learned it from watching others loose money! They know what doesn’t work!! Do what they do. Don’t try to reinvent the wheel.

If buy and hold is what you want, I would try to find a property within a few miles of your home, especially if you are going to do your own property management. Get educated. See if your local housing authority has landlord classes. Otherwise, join your Local REI club to network and learn.

JP

[sbgradinnb]

I hear what you are saying, unfortunately, I live in Orange County, CA and there are no houses below 200k for miles and miles.

Finding something below 60-70k that will rent for 1k/mo is impossible in southern CA.

[Carla_Hailey]

@GetWealthyInRealEstate post:15

I would invest in Bank-owned Commercial Real Estate.

Val

Also a great idea. :biggrin