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What would you do with 200k in real estate?

What would you do with 200k cash on hand?

I am 3x and work in construction industry for few years. I am also a new and "inactive" real estate agent. Recently I have this money and I want to make use of it efficiently to buildup equity or to generate cash flow.

I am thinking about three options, I am pretty new in investment and haven't done any before.

One is to flip houses, which I think theriotically can accumulate real estate experience and wealth faster. But I live in Guam, a remote island with limited house inventory. During Covid real estate price skyrockets as well as labor and construction material. I doubt if I can compete with other experienced investors as they have more cash on hand to close the deal faster than me. I am thinking to take loan to leavage my return on this. I do know some reliable house contractors.

The other option I have in mind is to use the money as down payment, and take mortgage to buy one or two rental properties and hold it for a relatively long time. But I have a full time job making only 80k a year and I am currently paying 1100 per month. In currentl market, rent is like 1800-2200/month for a 1600-2000 square foot property which market price is around 360k to 480k here.

Third option is to use this money to buy leasehold property. I can find property around 150k which generate 1300 rental income per month. Minuse vacancy and HOA, the cap rate will be around 8%. But it is leasehold, I don't think it is prefered because I may not get any capital gain after holding 10 years.

What would you do? Any suggestion is appreciated!

submitted by /u/rucio_chen
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source https://www.reddit.com/r/RealEstate/comments/sg7ogm/what_would_you_do_with_200k_in_real_estate/
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