What to do with the equity in my home?

[Daniel Arevalo]

In the past year I have been trying to educate myself as much as possible with how I would like to utilize the equity in my home to invest into my first real estate investment. However, I'm still very much undecided on what path I would like to take. I reside in Southern California and the real estate market here is quite expensive unless I invest into low income neighborhoods. I've explored short term rental options in the palm springs area but not sure that I would want this to be my first experience in the real estate business although I do have good resources where I can hit the ground running (or so I believe). I have also done some research on different OOS areas that would generate positive cash flow, as this is my priority at the moment. I have daily emails sent to me of different inventory in the Memphis area which is one area I have identified with the potential to generate positive cash flow. Thoughts anyone?

[Taylor L.]

Out of state is a feasible way to invest, but really get to know a market before you start buying properties. If you're thining Memphis, get to know the city well by online research, then go there and study it in person. Also consider whether you have the time & bandwidth to manage an investment property portfolio, and if doing so suits your goals.