Thousands of domain names expire every day. The reasons are different. Some owners forgot to renew the domains, some just don't want them anymore or they moved on to other projects. For most people these so called Expired Domains don't have any value. They just see a bunch of Domain Names someone else deleted and move on, but for the people who know about SEO or the value of good Backlinks, Expired Domain Names are money just waiting to get picked up from the street. The only problem is to separate the good ones from the bad ones. That is where comes into play.

Your course of action really depends on how much work and effort you can put into the expired domain. If you're barely able to maintain and optimize your current site, you probably want to just 301 redirect the old site (note: see my amended comment above about the link value not likely to be passed). If, however, you're more creative and have some time on your hands, you can try your hand at crafting a microsite. If you really know your stuff and are experienced at making money off various websites, you'd probably do well with the third option.

That said, my recommended budget for beginners would be $500+. Using this budget you could buy a bunch of high-potential $10 domain names, expired/dropped domain names or a mix of both. It’s very important to invest only what you can afford to lose and treat this as a side hustle till you get the momentum going. As you gain experience, industry expertise and some sales under your belt, you can then consider slowly growing your business into a full-time gig.