As careers progress and wealth gets accumulated, I find that I'm looking for new ways to diversify my holdings. From my 401(k), 529 and other side cash investments (mutual funds, bitcoin), I think I'm flush with exposure to the stock market. Unfortunately (really, fortunately - it's a good problem to have), there is still continuing excess cash flow. I've been discussing available opportunities with my brother in law, and concluded that we should purchase a property with the intent of becoming landlords via a partnership.
Combined, we have around $100,000 of available capital to deploy (that's the rough number he and I feel comfortable using), and I'm not 100% convinced that real estate is the way to go, but it seems to be the most obvious and easy choice. The idea is that we purchase a property, start a positive cash flow stream, escrow the cash flow and in a few years, purchase another property while also paying off the first one on the backs of the renters. Pretty simple.
I'm sure more than a few of my readers have or are finding themselves in similar situations - albeit likely with even more capital. What are you doing with that cash besides plowing it into the stock market or a high yield savings account? I'm plumb out of ideas...
Thoughts are:
- A franchise (which requires a TON of time)
- Commercial real estate (which I lack education)
- Beach house summer rental (lower cash flow, but allows our families to use it in the off season)
- REIT / Real Estate Investment Trust (no control over what the REIT does AND also puts more money into the stock market)
