My financial situation... what to do..?

Starting Out
2yFollow

My financial situation... what to do..?

Jason Guenther
Member since 2024 · 11 posts · 8 votes

I currently owe $157,000 on my house. $55,000 in various loans,etc. I have $150,000 in a 403(b). Will be out of debt in May-June 2025 (the $55,000). My available income for investing will be around $30-$40k a year just by saving. 

I have been pondering alternative ways to fund my first investment property.  But I would love more strategies to do more than 1 property a year. I would love to do 2-3 properties a year. We have thought about selling our home buying a duplex and renting the other side. We have considered tapping into our equity or partnering with someone. Or maybe we should go ahead and commit to pay down the house, our mortgage is $1100. I'm a baby to this and learning the jargon so go easy on me in regards to terminology but I appreciate any ideas. Thank you! 

4Reply
107 views

Most Popular Reply

John Clark
Member since 2018 · 1k+ posts · 1k+ votes
2y
Quote from @Jason Guenther:

I currently owe $157,000 on my house. $55,000 in various loans,etc. I have $150,000 in a 403(b). Will be out of debt in May-June 2025 (the $55,000). My available income for investing will be around $30-$40k a year just by saving. 

I have been pondering alternative ways to fund my first investment property.  But I would love more strategies to do more than 1 property a year. I would love to do 2-3 properties a year. We have thought about selling our home buying a duplex and renting the other side. We have considered tapping into our equity or partnering with someone. Or maybe we should go ahead and commit to pay down the house, our mortgage is $1100. I'm a baby to this and learning the jargon so go easy on me in regards to terminology but I appreciate any ideas. Thank you! 

You are probably a few years away from being able to invest. You need to build up personal reserves and then save for a down payment. 

Use that time to learn basic accounting and bookkeeping. Also look at LOCAL areas to invest in, and in what (single family homes, three-flats, etc.). Start small and local. Do NOT set deadlines and dates. Set deal qualifications. 
5Reply
See this reply in the discussion

29 Replies

Jump to latestLatest
  • Gary Castillo
    Rental Property Investor · Central Valley, CA · Member since 2021 · 4 posts · 4 votes
    2y

    I would say start making small obtainable goals like first set the goal of getting out of that debt. Create a budget (I use EveryDollar). Once you figure out your disposable income after expenses you can see how much you can save each month toward a downpayment on a property. For investments it’s 20%. Then make the goal get one house then get two and just scale like that. Eventually you will have equity in the properties and money saved from cash flow where you can scale quicker. Set obtainable goals to not be discouraged. 

    0Reply
  • Ran Fridman
    Property Manager · Illinois, Indiana & Wisconsin but call center all 50 states · Member since 2020 · 92 posts · 32 votes
    2y

    Congrats on your progress! Based on what you've shared, here are some options to consider:

    1. Leverage Home Equity – Use a Home Equity Line of Credit (HELOC) or refinance to access funds for a down payment on an investment property.
    2. House Hack with a Duplex – Sell your home and buy a duplex. Live in one unit and rent out the other to cover your mortgage, freeing up more cash.
    3. Partnering – Find a partner to help with funding or experience so you can acquire more properties faster.
    4. Creative Financing – Look into options like seller financing or lease options to reduce upfront costs and grow your portfolio quicker.
    5. Build Reserves – Make sure you have enough savings set aside for repairs or vacancies, especially with multiple properties.

    Once you’re out of debt, that extra $30-$40k per year will really help you expand. Keep learning, and good luck with your first investment!

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Jason Guenther why not:

    1) Pay off unsecured debt of $55

    2) Get a HELOC on primary for EMERGENCY purposes only.

    3) Buy a 2-4 unit and live in one unit, rent the rest. Can put as little as 3.5% down with FHA loan.

    4) Rent out your primary.

    You will have another 2 years to decide if you want to sell your former primary and still qualify for $500k tax-free proceeds exemption.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free