Posted by Jimmy on October 24, 2004 at 10:25:14:
You say you inherited the property. Does this mean that the property is now titled in your name alone? or is it held in a trust established for your benefit? or held by co-owners. it can make a huge difference when you try to cash out refi some of the equity.
as for what you do with the cash in hand, you will get as many answers as there are people to ask. a lot will depend on your particular investment objectives and your situation. Real estate might be a good fit for your case, or not at all.
As for which type of REI, there are a lot of choices. Vacation rentals would not be my first choice. These deals require a “hotel-like” management arrangement, and the management fees tend to be very high. If you can buy these properties in a down market, and can afford to hold them, the deal can work well on the back end. Now, if you are already in the market for a vacation property for personal uses, the deal can make sense. The net cash flow from the rental activity can help defray the carrying costs.
If real estate fits your situation, try to identify a really successful investor in your area, and try to learn how and what they do.