How to off high center? Where do I start?

Question

I’ve been watching bigger pockets YouTube videos for almost a year now. I’m ready to jump into the real estate game but I don’t know where to start.

I’m married with 4 kids, I make about $175k a year, we have about $250k of total debt, about $500k to $600k in equity in our current property, around $15k in liquid cash and close to $200k in retirement saving.

What does action look like for me and my family?

Alecia Loveless · Answer

@Jamaal Wofford I’d recommend paying off the consumer debt first. Then save more for a down payment.

Maybe you and your wife should sit down and brainstorm your goals and desired outcomes and then set about making an actionable plan to move towards achieving this.

Personally I don’t like having a lot of consumer debt because the loans I have on my investment portfolio are substantial enough without having other monthly payments.

Rene Hosman · Answer

Got it! Okay then you're in a really great place, if you had 250k of consumer debt that would change the focus a little!

You have 4 kids, and it seems like with your income you have a steady high-paying full-time job, correct? Have you thought about what your particular goals are when it comes to investing in real estate? Is it generational wealth, or potential cashflow, or diversifying your retirement?

Have you ever listened to Finance Friday on the BiggerPockets Money podcast? It's not all about real estate, but is about personal finance and obviously being BiggerPockets, real estate investing comes up often. This is the first episode I thought of for you, probably because they have 4 kids and so do you, ha! But if you search "Finance Friday" on BiggerPockets Money podcast on apple or spotify or wherever you listen they have some real gems that might help you think about where to start! Here's episode 160: https://link.chtbl.com/ofuTFpli

Rene Hosman · Answer

Please keep us updated on what you decide to do with your real estate investing!!

Jamaal Wofford · Answer

Thank you, Rene. And yes ma’am, that is correct, I have a full time job. My wife stays home and homeschools the kiddos.

We are looking for all of the above. Generational wealth, cash flow and retirement diversification are our goals. I’ll certainly check out that podcast and see what wisdom I can glean from those folks.

Again, thank you, for the guidance and Lord willing, we will begin our real estate journey soon.

Rene Hosman · Answer

Hi @Jamaal Wofford welcome to the BP community!

I think it's important to start with this - is your 250k debt what you owe in principal on the mortgage on your home or is this separate debt (credit cards, cars, medical, student, etc)?

How to off high center? Where do I start?

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