Hello, My husband and I flipped our first house and stand to make over $150,000. Our question is what do we do with all that cash? Invest? Save? pay off debt? or use it all as down payment for our next home?
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I’d say it depends, and we could use more information. How much is your debt? Do you want to purchase another house? How are the rest of your investments?
Our only debt is student loan debt, which is about $50,000. We do want to purchase another home, and we have only invested a small amount of money through the Robinhood app. We just want to be sure we make the money work best for us and our future.
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Invest in a lucrative business that has benefits in a long haul.
Heather C posted:
Hello, My husband and I flipped our first house and stand to make over $150,000. Our question is what do we do with all that cash? Invest? Save? pay off debt? or use it all as down payment for our next home?
Hi,
The first thing I would do is give. When I was in debt I gave my tithe 10% and offering in my church and stayed afloat. When I stopped giving things got 10x worse in life. Next I’d invest a portion of that money in your retirement. How much is too much? Then I’d take a low cost vacation to clear my head because when u get back you have work to do. Invest in wholesaling homes. Less expensive than Buying for flipping purposes or renting. Then some should be for stock investments (ETF) like Warren Buffet says and finally save the rest.
Save some for capital gains taxes unless you were also living in the home you flipped! Short term if you owned the home for 1 year or less, long term if you owned it longer.
I’d probably keep flipping if $150K is your net profit!!!, but cautiously. One at a time. The real estate market is good for sellers right now in my area of Florida. Prices are appreciating and there is an inventory shortage.
