Thought on using cash for short-term REI
Posted: Tue Oct 04, 2011 3:18 pm
I've recently used about half my 27% of cash in order to fund a short-term REI house fix and flip. Once it's complete, I'll move it back into SHV and SHY.
I'm curious what you all think of this move. As I see it, it mostly still does what it's meant to do in the PP, buffer against certain negative markets like a recession. Of course it comes with some risk - that I'll be unable to sell the house for a profit, but my analysis of this house showed a significant margin or error for any type of loss.
So what do you all think, is this a wise way to use my cash when the deal is right? Anyone else doing anything like this?
I'm curious what you all think of this move. As I see it, it mostly still does what it's meant to do in the PP, buffer against certain negative markets like a recession. Of course it comes with some risk - that I'll be unable to sell the house for a profit, but my analysis of this house showed a significant margin or error for any type of loss.
So what do you all think, is this a wise way to use my cash when the deal is right? Anyone else doing anything like this?