I’m going to make this a general question so that the topic will be wide open to suggestions. Where/how can you invest $100k and have a good ROI? What is the best way to go about it?
Not sure why you are here on this particular forum.
Invest in stock index funds if you don’t want to do any work. Low-mod rental real estate if you’re handy and don’t mind work. Although now is not a great time to buy, wait for the next RE downturn.
See https://www.mrmoneymustache.com/ blog and chat forums for lots of advice (U.S. centric).
Love Mr. Money Mustache. (maybe that should be past tense)
I agree that whatever you do you could probably wait for the next downturn. I like the ease and liquidity of stock funds.
Money Mustache did one blog featuring an Airbnb entrepreneur that really annoyed me – they had ignored regulations and lease agreements to build their “empire” with some inherited money or property or both.
I think the blog is good at making economic concepts and decisions clear through story telling. That said, the author definitely comes from a place of privilege not accessible to everyone.
I’m here on this forum because I have short term rental. It is doing well but I can’t afford another like I currently have but the savings account is not paying anything so I’m looking for an investment that will pay off. Was looking for ideas for other short term rentals that may not cost as much but could pay off a lot more than the next to nothing savings account.
Thanks for the tip. I’ll look into it.
Seems weird that you’re asking at this forum though. This time last year one of your posts said:
But this forum seems to attract the very immature and rude.
So it could be that we’re too immature to help.
Suggest the first thing you look into is “diversification.” As in, don’t put all your eggs in the STR basket.
A couple of people were very much.
Invest in me. I could use $100K and give you pennies back on your dollar just like your bank. I’d use it to buy a boat and supplies, and do an around the world cruise documenting and blogging about the post-Chaos world around us.
AirBnb is NO PLACE FOR INVESTMENT spending!! You actually have to work here to make any money.
Truthfully? Invest in medical R&D companies!
I guess I was right if I really said that.
So, my 18% ROI wasn’t a good investment?
$100K probably won’t buy any property that could be turned into a rental. However, you might be able to use that as a down payment.
I suggest you look in the vicinity of your main rental so it’s easy to add on to the management of your first property. Keeping your incremental costs low for the second property is a significant factor in getting a good return. For instance, using the same type/color of towels in both properties means you don’t have to keep many spares on hand.
And since you already know the local market, you can put together a reasonable business plan for when you apply for a mortgage.
Pay for a Financial Advisor.