First Time Home Buyer Looking to Start Generational Wealth
Member since 2025 · 4 posts · 4 votes
First Time Home Buyer Looking to Start Generational Wealth
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votesHey there! Love your ambition and the steps you’ve already taken. Buying your first property with that kind of interest rate is awesome, and you’re definitely in a great position to grow your portfolio.
Here’s a breakdown of your options--
1. Should You Save More?
While saving more will always help in the long run, you don't necessarily need to wait until you have a huge pile of cash to start investing, especially with your 780+ credit score. You could start using the current equity in your home to help finance your first investment property now.
2. Is a HELOC on Your Primary Residence a Total No-Go?
Not at all! A HELOC can be a smart way to tap into the equity of your primary home to fund an investment property, especially with your low-interest rate and strong credit. The key is:
* Don’t over-leverage: Only pull out what you can safely afford to repay while keeping your emergency funds intact.
* Have solid plan for the investment property, ensuring it generates enough cash flow to cover the new debt and costs.
* Understand the risks - if things go south, your home could be at risk since the HELOC is secured by your primary residence.
3. Consider Multifamily Homes
Multifamily properties are fantastic for cash flow and long-term wealth. Here’s why:
* You get multiple income streams from a single property.
* Your tenants help pay down your mortgage, allowing you to scale faster.
* FHA loans or conventional loans can help you finance up to a 4-unit property with low down payments (as low as 3.5% for FHA).
Look at 2-4 unit properties in areas with strong rental demand. You can live in one unit while renting out the others to cover your mortgage, reducing your personal living expenses.
Other Strategies You Could Explore:
*House Hacking: Buy a duplex or triplex, live in one unit, and rent out the others to cover the mortgage.
*Seller Financing: This is something worth exploring, especially in areas where properties may not be as competitive.
* Look for undervalued properties you can rehab for quick equity build-up (you mentioned surrounding areas, so local markets can offer opportunities).
You’ve got a solid foundation with great credit, equity, and ambition. A HELOC or using savings for a*multifamily investment could be a great first move. Focus on understanding the numbers - cash flow, repair costs, and appreciation - before jumping in.
If you're hesitant about using the HELOC, you could always partner with someone (maybe another investor in the area or a trusted friend) to pool funds, share risk, and scale faster.
You’re headed in the right direction and there’s a whole world of opportunity in multifamily investing. Don’t let fear stop you, and don’t feel like you need to wait until everything is perfect!
Excited to hear how your journey progresses. Feel free to ask more questions as you go! Always here to help.
Best of luck,
Melissa
10 Replies
- Rental Property Investor · Myrtle Beach · Member since 2019 · 38 posts · 25 votes1y
Hey Rick, what other routes would you be interested in? Live in flips can be a very positive route, especially with a multi family. Positive income to float your bills and force equity through renovations. Are you handy with tools? Or at least willing to learn.
- Member since 2025 · 4 posts · 4 votes1y
Yes I am actually looking into house hacking and renting my current primary residence out. I literally just saw a duplex in my area that is fairly updated.
I am always eager to learn and would like to think I’m a decent handyman!
With the advice from a friend to start digging and hours of research and YouTube videos Im finally nearly finished building my retaining wall for the backyard that I had started back in the summer of 2022. Last year I was sure I threw my back completely out from the tons of rock I had moved.
Needless to say I’m definitely driven.
- 1yBryce JamisonPro MemberRental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
Based on the information you provided, buying another house to house hack and converting your current residence to a rental sounds like a viable next step.
I would advise buckling down and saving a lot more too. You'll want your own personal emergency fund, your rentals emergency fund, and of course money for your next down payment. I'd also pay off any consumer debt if you have any.
I'd also advise continuing to dive into YouTube, these forums, and investing books. If you do that for 6 months you should have more clarity and confidence moving forward. Meetups are also a great place to meet like minded individuals and talk strategy.
- Member since 2025 · 4 posts · 4 votes1y
Quote from @Bryce Jamison:
Based on the information you provided, buying another house to house hack and converting your current residence to a rental sounds like a viable next step.
I would advise buckling down and saving a lot more too. You'll want your own personal emergency fund, your rentals emergency fund, and of course money for your next down payment. I'd also pay off any consumer debt if you have any.
I'd also advise continuing to dive into YouTube, these forums, and investing books. If you do that for 6 months you should have more clarity and confidence moving forward. Meetups are also a great place to meet like minded individuals and talk strategy.
Thanks for the feedback I agree I need more knowledge and capital. If you know of any meet ups or events that I can attend or even a mentor please point me in the right direction.
- 1yBryce JamisonPro MemberRental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
Quote from @Rick Brink:
Quote from @Bryce Jamison:
Based on the information you provided, buying another house to house hack and converting your current residence to a rental sounds like a viable next step.
I would advise buckling down and saving a lot more too. You'll want your own personal emergency fund, your rentals emergency fund, and of course money for your next down payment. I'd also pay off any consumer debt if you have any.
I'd also advise continuing to dive into YouTube, these forums, and investing books. If you do that for 6 months you should have more clarity and confidence moving forward. Meetups are also a great place to meet like minded individuals and talk strategy.
Thanks for the feedback I agree I need more knowledge and capital. If you know of any meet ups or events that I can attend or even a mentor please point me in the right direction.
You can setup keyword alerts on here for all of your surrounding cities and counties to see if someone is posting about a local meetups. If you don't find any, you can ping local BP members and start your own.
If you're looking for a mentor, I would not advise asking for one in the forums. Instead I recommend a targeted, tailored approach with you looking to offer something in return for the guidance you're looking for.
To me this means directly reaching out to the people you'd like to mentor you, in person if possible. This could be a local realtor, investor, contractor, appraiser, property manager, whatever.
It also means having what you're offering ready and tailored to the individual. If you say you'll do whatever, even if you give a list, you're putting the burden on them to determine what to do with you and creating another barrier to entry for yourself.
What you do specifically depends on the mentor. For an investor you could "drive for dollars" then use the deal calculator on this site to create reports of deals that makes sense in your area. If you took that to a meetup and gave it to every investor you met, I bet one would be willing to talk to you.
- Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes1y
@Rick Brink I'm not giving advise to you or anybody else, but can tell you what I did. I started with nothing and bought my first eleven properties all with nothing down in one way or another. My motto was to borrow as much as I could for as long as I could. I borrowed bank mortgages, FHA (owner occupant) mortgage, VA mortgage assumption, second mortgages on multiple properties, signature loan (no collateral), as well as private loans. I was aggressive in getting loans on every property, because I didn't have savings and had a low paying entry level job. But on the other hand I had no personal debt for credit cards, or regular life expenses. Many of the properties need some work, for which I got lots of help from friends and family. Bought a 3 unit where all units needed work. Ended up putting in new furnaces, new electric service and lots of new plumbing. Bought another house near the beach that required several work trip before we could even stay there, where we gutted the only bath to the studs and replumbed the whole house, just me and my bestie. We never did see either the beach or the ocean on those trip, much of the time was spent in the crawl space under the house. I paid all expenses, but my friend worked for free, in exchange for future free use of the place. Of the first 11, 4 were foreclosures, 2 were from relocation companies, 2 were private unlisted, 1 was probate, 1 was auction, and 1 other was MLS. I went where I thought I could get a deal on a good property. The first one I owned for 24 years, the second one for 37 years, the third one for 23 years, the fourth for 17 years, the fifth for 17 years, the sixth for 31 years, the seventh for 24 years, and eight for 36 years.
- 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
You can do a HELOC, but you want to be careful you BRRR and can then pay it off.
When are you speaking to a lender to find out what you will qualify for?
Logical Property Management4.9459 Reviews - 1yJoseph TadresPro MemberReal Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
Hey Rick, I recommend considering a HELOC to tap into your home's equity for a multifamily property, like a duplex, which can provide steady cash flow. With $10k saved, look into FHA loans or creative financing options like owner financing. Networking and mentorship will also help you find great opportunities.
- Member since 2025 · 4 posts · 4 votes1y
Thank you everyone for the feedback. Talked to my lender when I got off he said it’s looking solid for the preapproval on the house hack with an fha loan. Afterwards I went on house hunt today and saw atleast 6 houses all of which were pretty ran down besides the duplex that I mentioned with an asking price of 259k. A bit on the high end, but entirely turnkey with what looked to be a very nice couple with a baby as tenants downstairs and upstairs all redone with a screened in balcony and on my way home literally less than a block away I see a guy knocking a for sale sign into the ground, so I parked my car home and walked down the hill and asked him what he was selling it for. He said asking 169k. It’s his brother’s who passed house so the deed is through a trust he’s wanting 10% down. I explained how I’ve been looking at houses since I got off work and asked him if I could see the house. Screened in front porch 4 bedroom 2 bathroom all new flooring and carpet upstairs. Added some stairs and paint to the little deck on the side of the house with a new roof. The basement was very wet. I didn’t venture far before I realized ya, nobody has.
3 and half hours later here I am.. Wondering what’s my best move now? - 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
Hey there! Love your ambition and the steps you’ve already taken. Buying your first property with that kind of interest rate is awesome, and you’re definitely in a great position to grow your portfolio.
Here’s a breakdown of your options--1. Should You Save More?
While saving more will always help in the long run, you don't necessarily need to wait until you have a huge pile of cash to start investing, especially with your 780+ credit score. You could start using the current equity in your home to help finance your first investment property now.
2. Is a HELOC on Your Primary Residence a Total No-Go?
Not at all! A HELOC can be a smart way to tap into the equity of your primary home to fund an investment property, especially with your low-interest rate and strong credit. The key is:
* Don’t over-leverage: Only pull out what you can safely afford to repay while keeping your emergency funds intact.
* Have solid plan for the investment property, ensuring it generates enough cash flow to cover the new debt and costs.
* Understand the risks - if things go south, your home could be at risk since the HELOC is secured by your primary residence.
3. Consider Multifamily Homes
Multifamily properties are fantastic for cash flow and long-term wealth. Here’s why:
* You get multiple income streams from a single property.
* Your tenants help pay down your mortgage, allowing you to scale faster.
* FHA loans or conventional loans can help you finance up to a 4-unit property with low down payments (as low as 3.5% for FHA).
Look at 2-4 unit properties in areas with strong rental demand. You can live in one unit while renting out the others to cover your mortgage, reducing your personal living expenses.
Other Strategies You Could Explore:
*House Hacking: Buy a duplex or triplex, live in one unit, and rent out the others to cover the mortgage.
*Seller Financing: This is something worth exploring, especially in areas where properties may not be as competitive.
* Look for undervalued properties you can rehab for quick equity build-up (you mentioned surrounding areas, so local markets can offer opportunities).
You’ve got a solid foundation with great credit, equity, and ambition. A HELOC or using savings for a*multifamily investment could be a great first move. Focus on understanding the numbers - cash flow, repair costs, and appreciation - before jumping in.
If you're hesitant about using the HELOC, you could always partner with someone (maybe another investor in the area or a trusted friend) to pool funds, share risk, and scale faster.
You’re headed in the right direction and there’s a whole world of opportunity in multifamily investing. Don’t let fear stop you, and don’t feel like you need to wait until everything is perfect!
Excited to hear how your journey progresses. Feel free to ask more questions as you go! Always here to help.Best of luck,
Melissa
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