Accumulating Wealth to purchase an investment property

[Jacob D.]

I purchased my first home a little over a year ago in San Diego, CA. I am currently paying well over the mortgage but I have become increasingly interested in purchasing a second home as an investment property. My question/concern is what I should do with my money now to prepare/enable me to purchase a second home in the future. 

Should I continue to put more money into my current home than required, or should I do something else with this extra cash in order to allow it to accumulate and enable me to put money down on a second property? Any recommendations on investing this extra cash until I accumulate enough to put 20% down on a home?

[Jason Carter]

Yeah, I'd stop putting money into your house. Put that extra money to work. And besides, appreciation in San Diego will probably serve you well. Why rush to pay off your house? 

One thing I've been doing to increase capital, and make more money than any bank is going to pay, is invest in out of state flips. You're in first position on the house with multiple exit options, it's a great deal IMO. Happy to share more details with you.