Advice for moving towards full time investing
Hi All,
Long time reader, first real post. Just a bit of background, I am 28 living in a large metro area in Massachusetts. I bought my first investment property at 22. This was a 2-family in a great neighborhood which I have lived in for the past 5+ years. At the time, I was working in construction/excavation as a salesman/estimator. For the first few years I had a tough time but eventually started to make a bit more money which helped. 2 years ago I switched careers that increased my pay and lowered my cost of living. Over the past 5+ years our local market has blown up and I am in a position now where I am making great money (after commissions I make 100-150k py), I have very low costs (Work pays for my vehicle plus all expenses included with that such as fuel, maint, ins. etc., my health insurance, and half of my meals). My two family which I purchased for 212,000 is now worth between 350-400k and I owe 175k. My only debt is my multifamily and student loans and I am able to save 50-100k per year.
Now, I love my job but do know that my goal has always been to live strictly off of real estate investing and now that I am a bit more established I want to move towards that goal. I know how to run basic numbers on financing, expenses, etc. and understand in basic terms the basics of REI. Currently our market is insane and properties are going for far more than they are worth on an investment standpoint though there have been a few decent deals I have seen. The general feeling at least around here is that we have a year or two left before the market goes down.
My question is this, with the equity I have in my current property, which really doesn't profit me a ton, how would you go about pulling out equity? With the market hot should I sell? (I do have the option to move back in with my parents or move in with a friend to keep costs low). Should I do a cash out refinance? Would you buy now for a decent deal or hold out a year or two and save more and wait for the market to fall? How has everyone else been successful?
Also, If there are any local experienced investors in the Worcester County area please feel free to reach out, I am always looking to hear success stories, learn more, and get advice.