On-screen text
SELF MADE MILLIONAIRE REVEALS THE BEST THING TO DO WITH $250K IN THE BANK.
Michael Elefante
@melefante6
$250k in a savings account earns you about $1k a year.
Inflation quietly eats most of it.
So it feels safe... but it's actually losing value every year.
Here's what we'd do with it instead:
Use it to buy a cash-flowing short-term rental.
$250k can control a $700k+ property (includes furniture and set up costs)
That property pays you every month and builds equity while you sleep.
Here's what that looks like:
The right Airbnb in the right market can cash flow more in one year than your $250k earns in decades sitting in the bank.
And it could potentially eliminate all of your taxes too.
What it could look like for you with $250k
Buy a $700k property with 15% down ($105k).
Spend the rest on upgrades, design and amenities
At a modest 10-15% cash on cash return,
It would cash flow $25-$37.5k per year.
And here's the best part most people miss:
That property create a year one depreciation loss of about $250k
And because it's a short term rental (avg length of stay <7 days)
And you materially participate at least 100+ hours
(and more time than anyone else)
You can carry the losses over to reduce all your active taxable income (W2, etc)
At 37% federal tax rate
This could save you ~$92k year one.
This is why short term rentals are the best investment vehicle for high income earners.
One last thing:
If you are too busy to find the deals & run the numbers...
Set up the property and manage it...
You can use a service called BNB Turn Key, which will do it all for you.
If you've got $250k+ sitting in the bank and want to learn more, DM me "TURNKEY" and let's chat.