Where would you invest 500k?

[Anonymous]

We have been keeping this cash for a potential move most likely to buy land and build a house. Instead, we decided to stay at our current home.

Where would you invest this 500k?

I was thinking 2-3 investment properties that we could rent out.

[Anonymous]

500K buys 3 places? Where are you?

[Anonymous]

Anonymous wrote:500K buys 3 places? Where are you?

I assume he meant the 2-3 properties would be financed and 500k would cover the down payment. So, something like $800k-$1M per property, with 20% down on each.

[Anonymous]

Anonymous wrote:We have been keeping this cash for a potential move most likely to buy land and build a house. Instead, we decided to stay at our current home.

Where would you invest this 500k?

I was thinking 2-3 investment properties that we could rent out.

Do you want to be a landlord?

I do not want to be a landlord and deal with problem tenants, repairs, property damage, evictions, vacancies, etc. I would take the money and invest it according to my asset allocation in my current portfolio.

[Anonymous]

Do you want to be a landlord? Do you have other cash and investments?

I'd probably dollar cost average it back into the stock market, but that's just me.

[Anonymous]

Anonymous wrote:Do you want to be a landlord? Do you have other cash and investments?

I'd probably dollar cost average it back into the stock market, but that's just me.

We have the rest of our money in various brokerage accounts. Trying to diversify.

[Anonymous]

Anonymous wrote:

Anonymous wrote:500K buys 3 places? Where are you?

I assume he meant the 2-3 properties would be financed and 500k would cover the down payment. So, something like $800k-$1M per property, with 20% down on each.

OP here. Yes, we would finance. I was thinking 500-600k townhouses we could easily rent out. Would keep 50-100k in cash for replacement reserves and repairs.

[Anonymous]

Unless you can post additional guarantees, you will have trouble financing 3 investment properties with only ~20% down. Some banks offer blanket loans on multiple properties for slightly higher rates, but 70% used to be common. You may have heard that in the last couple of months lenders have really tightened their requirements.

Anyway, let us know what kind of feedback you get from banks. I don't think this will work, but would love to be wrong.

[Anonymous]

I'd put it all in index funds.

However, why not mix it up? put 20% down on one rental property and maybe but the rest in the stock market? Sinking the whole thing in real estate would make me uneasy.

[Anonymous]

if you have any variable line of credit - credit cards, HELOC, etc. i would pay that down a bit. Interest rates are on the rise

[Anonymous]

Anonymous wrote:Unless you can post additional guarantees, you will have trouble financing 3 investment properties with only ~20% down. Some banks offer blanket loans on multiple properties for slightly higher rates, but 70% used to be common. You may have heard that in the last couple of months lenders have really tightened their requirements.

Anyway, let us know what kind of feedback you get from banks. I don't think this will work, but would love to be wrong.

That really depends on his income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do you want to be a landlord? Do you have other cash and investments?

I'd probably dollar cost average it back into the stock market, but that's just me.

We have the rest of our money in various brokerage accounts. Trying to diversify.

If you're just looking for diversification, why not invest in some REIT. That gives you a real estate allocation without the headache of being a landlord.

[Anonymous]

Anonymous wrote:Unless you can post additional guarantees, you will have trouble financing 3 investment properties with only ~20% down. Some banks offer blanket loans on multiple properties for slightly higher rates, but 70% used to be common. You may have heard that in the last couple of months lenders have really tightened their requirements.

Anyway, let us know what kind of feedback you get from banks. I don't think this will work, but would love to be wrong.

i have just ONE property and I found no bank who asked for less than 25%. It was a huge pain the ass to get the property ready to rent, find renters, closing costs, etc. do you have a full time job? or will this be it

[Anonymous]

I would buy a couple multi-unit properties in NE or SE DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Unless you can post additional guarantees, you will have trouble financing 3 investment properties with only ~20% down. Some banks offer blanket loans on multiple properties for slightly higher rates, but 70% used to be common. You may have heard that in the last couple of months lenders have really tightened their requirements.

Anyway, let us know what kind of feedback you get from banks. I don't think this will work, but would love to be wrong.

That really depends on his income.

No, it doesn't. It depends on guarantees.

You could have low taxable income, but a strong letter of credit or other guarantee based on some other collateralized assets. The bank will want to know that it is reasonably protected from default.