Intro: Welcome to the real investing show with Tim heritage each day, we’ll provide real investing for everyday investors. Tim is a nationally recognized real estate investing expert podcast, host and public speaker. He built his businesses from the ground up and is here to help you do the same. Here is your host Tim heritage.
Tim Herriage: Welcome back to real investing. I’m Tim har. Today. Ron writes, if you had a hundred thousand dollars to invest, where would you put it to work? So, Ron, right now, if I had a hundred thousand dollars that [00:00:30] I wanted to invest, I would put it into affordable housing. I feel like when you look at the shortage of inventory on the for sale side, as well as the shortage of inventory on the lease side, supply and demand is undefeated. I think as long as you’re at or below the current median home price in the area that you feel the most comfortable with. And as long as you say, have a debt service coverage ratio or your cash flow is 1.2 or greater, just [00:01:00] meaning if your expenses are a thousand dollars a month for your principal, interest taxes, insurance, and any homeowners associations, then your rent would need to be 1200 and your loan of value is 75 or, or less 75% or less.
Tim Herriage: I feel like it’s a great time to buy rental property. There’s a lot of hedge funds that have backed out of the market. It’s just, uh, there there’s a lot of opportunity and like I always say, right, you don’t wait to buy real estate. You buy real estate real estate [00:01:30] and wait, I would avoid cryptocurrency for the moment. Um, just feel like there’s a lot of regulation coming that way. And, uh, it’s just volatile. I would avoid the equities markets right now because really until the federal reserve signals that they’ll be backing off of some of the stated monetary policy. We’re just going to see continued rise in volatility and then decline in volatility and then rise in volatility. And I think investing is a key [00:02:00] word in your question. Investing means you are in it for the long haul means you’re not watching the minute by minute by minute stats.
Tim Herriage: So if I had a hundred thousand dollars to invest, I would put it to work in affordable housing that I would own as a rental property that I plan to own five to 10 years or longer. And I would get fixed interest debt because interest rates could go up. Interest rates could go down, but when you lock in your expenses like your [00:02:30] interest rate and you have good long term CA financing, then you have more predictable cash flow. Um, and that’s where I would invest a hundred thousand. No, Ron, thanks for the question. If you have questions, check out. I have lunch, money.com and we’ll see you tomorrow.
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