Should I wait or go for it

Question

Hello I’m 22 I bought my primary residence back in 2021 I currently owe $122,000 the estimated value of it is now $206,000. I have $11,000 cash on hand. I’m wanting to get into real estate but I’m not sure if I can yet or not I’m about an hour drive from Indianapolis. I’d like to get into rentals or maybe fix and flips I’ve talked to a bank and they will approve me up to $75k on a property any help or advice would be appreciated! Thank you!

Nick Giulioni · Answer

Hey bud - congrats! Love Brian's idea about repeating what you've already done! Lean in to what you've been successful at!

Brian G. · Answer

@Seth Nichols why not repeat what you’ve already done (purchase another primary and rent out your current place) and/or house hack your current property (rent out room/s to a buddy) or next property?

Kellie Powell · Answer

Have you thought about getting a personal HELOC on your current property.  Use that money plus your cash on hand to buy a rehab property, then get a loan for the rehab & holding costs.  I am an hour north of Indy.  This is what we have done.  We are now on property #3, using our personal HELOC for a cash purchase....which can be more enticing to a seller.  We close in 10 days +/-.

Use your profits to reinvest and eventually you won't need a bank loan at all!

Gloria N Gear · Answer

I did a fix and hold last spring with $12K by using a hard money loan and refinancing into a conventional loan.  But there are a lot of different options for loans out there that will work.  Being an hour from Indy, there are lots of options for areas for you as well.  I think that you are probably closer than you think, keep researching.  I will PM you some places to look.

Adam Oldham · Answer

Hey @Seth Nichols congrats! If you are leaning towards a fix & flip I would suggest finding something closer to where you live. Not that it can't be done but I think it will be easier to manage. I do think Josh brings up a good point if you can pickup another house using conventional financing with 3-5% down that could be an opportunity even if you put some sweat equity into it and sold it a year or two later.

Josh Young · Answer

@Seth Nichols rather than getting into fix and flip why don't you buy another primary residence using a low down payment and turn your first house into a rental?  Here is a post I did that might help you: https://www.biggerpockets.com/forums/61/topics/1096979-how-i...

Rob Birch · Answer

@Seth Nichols check out local real estate meet-ups like this one. https://cireia.club/

Ryan Muska · Answer

Congrats on already owning a property!

As far as hopping in now, I'm not familiar with the Indiana markets, but homes are typically more expensive today than they were last year.

Make sure you get a good deal. Lots could go wrong, but at that amount of money it won't cripple you for life, so in the unfortunate case you lose all that money...learn from it and start over.

I wish you the best and if you ever would like to discuss anything you may need help with, I'd love to provide some insight!