Need help strategizing

[Erik Charen]

Hi, I am new to the forum and I am looking to start my journey in real estate investing. I would greatly appreciate any help to thinking about my situation that you can provide!

 I recently got a new job so my wife and I will be moving closer to Ann Arbor and I have enough saved to buy a new house without selling my current house. However, after analyzing my current house it would not cash flow positive using a long term Rental with my current mortgage. I bought my house over a year ago for 25% down, and my house has appreciated so I could potentially sell and recap my initial down payment after closing costs. I am thinking I could buy a house that makes sense for a rental (cash flow positive) and live in it as my primary residence for over a year and fix it up while living there, and meanwhile look for another property as my first rental. My goal is to build wealth in the long term. I don't have a ton of time to flip or take on huge projects so I'm interested in long term rentals. 
My questions are: what strategies make the most sense for me with my current situation? Is there a way that I can use my current property to make it cash flow without waiting for rates to come down?

Thank you!! 

[Melissa Justice]

@Erik Charen,

Hey, welcome to the forum and congrats on the new job and upcoming move! You’re asking all the right questions and already thinking like a long-term investor.

A few thoughts on your situation:
It sounds like you’re sitting on a solid asset with your current home, especially since you bought with 25% down and it’s appreciated. If it won’t cash flow as a long-term rental right now, you might consider short- or mid-term rental strategies (e.g., traveling nurses, corporate rentals, etc.) depending on your location and demand. That could bridge the gap until rates improve or rents rise.

Your idea to:
Buy another home that can cash flow long-term

Live in it, fix it up gradually, and position it as a future rental
…is a smart house-hacking-style strategy. That’s a great way to keep building equity while reducing your risk and overhead.

If you’re looking for a more hands-off approach with true cash flow, also consider turnkey rentals in landlord-friendly, affordable markets like the Midwest and Southeast. You can buy fully rehabbed, tenant-ready properties where cash flow can start very quickly without the need to take on big projects or oversee renovations.

Happy to chat if you'd like help analyzing deals or specific markets.

Best of luck,

Melissa