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Thought on using cash for short-term REI

Posted: Tue Oct 04, 2011 3:18 pm
by tjt
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?

Re: Thought on using cash for short-term REI

Posted: Tue Oct 04, 2011 3:39 pm
by MediumTex
I wouldn't do that myself, but I understand your logic.

It's not a PP you are running, but it might still work out okay.

Re: Thought on using cash for short-term REI

Posted: Wed Oct 05, 2011 5:07 pm
by murphy_p_t
suppose gold or stocks go on sale next week (50% off)...how will you be able to take advantage of this without the cash on hand?