Newbie interested in investing

[Drew Gar]

Hey everyone!

I quit my manufacturing job in September due to health issues. Since then I've been looking into investing with the goal of creating sustainable cash flow. My family has an asset that I thought to use for leverage towards other properties: a house that my dad says is worth ~250-300k. I've found the possibility of wholesale intriguing, but what's the best model/path forward? I'm in northern NJ.

I'm very new to all of this. Thanks, looking forward to discussing!

[Melissa Justice]

@Drew Gar,
Welcome! Smart move looking to leverage that family property. I’m originally from NJ and have sold real estate there for years and I’ll be direct: North Jersey is tough for cash flow (high taxes, high prices, tenant-friendly laws). That’s why many NJ investors buy out-of-state where the numbers are stronger.

If the property is paid off, you’ve got 3 good options:

1) HELOC
Tap equity while keeping the property.
Use the HELOC as down payments on cash-flow rentals.
Flexible, and you only pay interest on what you use.

2) Cash-Out Refi
Same idea, but longer-term fixed financing instead of a credit line.

3) Sell and Re-Deploy
Convert one high-equity asset into 2–4 rentals and diversify your income.

Goal: turn equity into monthly cash flow, not just sit in one expensive property.

Markets Where the Numbers Actually Work:
Akron / Canton, OH
Columbus, GA
Birmingham, AL

Lower entry prices, stronger rent-to-price ratios, and landlord-friendly laws - much easier to scale.

Quick Note on Wholesaling - Good hustle strategy, but it’s active income. If the goal is passive cash flow, stick to rentals.

Always happy to chat more about what's worked for other investors. Best of luck!