My scenario and your advice

4 Replies

Hello BPers,

I really do enjoy reading your post and also your blog. I wanted your take on my situation.

Monthly income is 6000. Expenses is 3000. Stopped 401 k contribution up to employer match.

With this, how do start a buy and hold strategy?

My wife will be finishing residency soon and we know she will be bringing in three times what I make now but I wanted to start REI now so I will master it and when she is done with residency and I can be a full time investor. I have prequalified for loans at 4.8. % with 90LVT on homepath homes or 20% down for all other homes up to 10 homes a lender. I have really researched a lot about REI and read many books and asked so many questions. I know am ready to pull the trigger but cash money is holding me back. I am a new medical professional and sent a lot of money to my homeland and thus less less savings. There are numerous turn key homes the market am looking at and many are the usual 3:2 @70000 and comp rent are 900 to 1100. Great school districts. All advice and criticisms welcomed.

Thank you.

Save the 3K per month, bring deals to an investor, borrow against the 401K or convert it to a self directed/solo account. Best of luck.

Only you can decide what level of risk you are willing to take. Since you can find houses that make you more than your cost of money you can use as much leverage as you are comfortable. If I could save $3,000 per month plus the money my wife would soon be making I would create an emergency fund of $15,000 to $30,000 and then start saving to pay cash for my first house. I might use leverage later when I can afford it.

this is a marathon, not a sprint.

Good Luck.


@Nana K.  

Welcome to BP!  You have certainly come to the right place. My advice to you is this:

Start small.

You are at a good starting point. You have a clear idea of where you stand. However, you are short on cash reserves. Save your money. Get familiar with your area (I mean really familiar... Drive around and look at neighborhoods, even those outside of your comfort zone. If buy and hold is your goal, the best places to invest may not be the areas that you are considering). The best deals are not on the MLS. Network within the site and your local community to find people who can find you deals. This may be an experienced agent who is well-connected, a wholesaler, an investor or a combination of the above.

Read this:

Finally, know where you are going. What is your ultimate goal? What level of income will make you feel safe and secure? Set a number. A clear, precise goal. Then set-up actionable steps to reach whatever goal you set for yourself.

Start small, grow with confidence and know that you will make mistakes. We all do. Success in real estate depends on your ability to withstand set-backs, push-downs and unexpected challenges. Pick yourself up, brush yourself off, learn and keep going... And I guarantee you that you will be successful.


We got started doing baby steps. We bought our first house using a VA loan. It was an forclosure that needed a lot of work in one of the best neighborhoods. We gutted that one and than my husband received military orders and we bought another personal property out in California. I highly recommend starting with personal properties and than renting them out you move out due to family growth, job location, etc. We buy houses using investment loans but this allowed us to get started when we were young and poor :)

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