Guidance for a newbie please!
Hi all, brand new, zero deals, but motivated - hoping someone with more knowledge that I have can give suggestions on how I should start out in REI given my specifics. In the absence of a mentor, and getting bogged down in webinars and podcasts and seemingly a thousand ways and strategies to get started, it would be awesome to get some nudging in the right direction - even if to be told "stop overthinking and do something". Excited by the positive success stories, and daunted by the "deals gone wrong" stories and talk of recession, what they may mean etc.
Here are details -
*Full time job so need relatively low time commitment for now, although wife would help when not looking after young kids.
*Live in California where house prices are steep and basic numbers (gross rent multiple etc) on surface look no good so looking out of state.
*Approx $550k in equity in home, refinancing could release $250k.
*Self directed IRA about $90k.
My goals - livable income from property within 5 years, efficient velocity of capital (reuse money through refinancing etc), learn as much as I can, have fun, more time with family.
Various combinations of the following I have considered.
—>To release capital to invest:
*Release equity in home through $100k HELOC (then refi rentals after a year).
*Selling home to downsize (or maybe move into house hack property if I can find one that works) and release capital that way
*Renting out our home to net probably $1000 before cash out refinancing and maybe getting out more than $250k.
—>To start investing have considered:
*Start out easy with turnkey SFH rentals out of state to learn more practically - just 1 or 2 to start. Have considered through Real Wealth Network, and even Mashvisor / Roofstock. If successful (cash flow and tax benefits and hopefully appreciation) then scale and reposition in about 5 years.
*Explore Airbnb home ownership through Vacasa. If successful then scale.
*Try BRRRR later once I have time, experience etc.
*Thought about small multi-family but seems more complex to down the line maybe.
That’s about it. Appreciate any guidance I advance. Oh hey and if anyone wants to give mentoring a go, help build out a plan etc - I’d be willing to listen!