Cash vs HELOC for new turn key investor

[Josh Bast]

Hey all -

Hoping I could get some advice on whether or not I should proceed with my current options...

I want to invest in real estate, however, turn-key is really the only option I can reasonably handle right now considering my work/family life. I have been in the process with Memphis Invest and feel like they make me the most comfortable in terms of a true turn-key experience...only issue is their props are priced at a premium.

For financing, I have about 25K in cash, 35K in a HELOC, and could roll my 401K into an IRA to leverage that (however I am participating in employer match, not sure of repercussions...).

Would prefer not to burn my cash, however, if I use my HELOC for the down payment....I would essentially kill my monthly cash flow or make a few bucks. If I use my cash, well, my cash is gone and is just a bit more risky in my view.

Part of me wants to wait until I have more cash on hand and use a mix of HELOC and Cash...or just go all Cash and use HELOC as reserve? I also feel like if I wait, I won't get in.

Do I bite the bullet and just buy a prop that does not cash flow and hope for appreciation or hold it long enough to refinance and get another? Do I suck it up and get into the game with my cash? Do I wait until I have more cash? Should I look for a turn-key company that maybe has a more appealing deal? 

Stuck...sorry if this is a bit stream of consciousness :)

Thanks in advance!

Josh

[Josh Bast]

@Chris Clothier - really appreciate you spending the time to thoughtfully respond! That makes sense and I had a feeling that was the right move, I just don't have the ability to be managing more involved real estate transactions right now (or I am concerned it will take away from other projects that require my focus right now) and I want to get started...so it is frustrating as you can imagine. Definitely taking your advice to heart...thanks again, Chris!