Newbie interested in investing

Member since 2025 · 1 post · 6 votes

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!

6 Reply

233 views

Most Popular Reply

Melissa JusticeBusiness Member

Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes

11mo

@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!

[email protected]313-221-8718

3 Reply

See this reply in the discussion

12 Replies

Jump to latestLatest

Sort by

Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
11mo
Quote from @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!
Well, you didn't say how much liquid assets you have. It sounds like a house that is worth something, but it isn't liquid. First there probably would be a huge tax hit if you sold and in addition, it costs lots of money to sell.

So, I would rather borrow against the property (which is not taxable) and use that money. The problem is the loan has to be in the name of the person who owns the house. Also, that person has something called a Debt to Income Ratio. That means you have to have an income. You don't state how that works in your situation.

But, setting that aside, you can probably wholesale properties to "build your bank" to do other kinds of investing. You first have to find out if what you want to do is legal, in the state you want to do it. Not all states allow every kind of activity. But, if it's allowed where you want to conduct business, the general idea is to find a property someone wants to get rid of and sell the contract to buy it, to someone who wants the property.

There are legalities involved in wholesaling, so you do one or two things 1. Get licensed as a real estate agent 2. Or learn the proper way to wholesale for the state you want to do that in.
1 Reply
Austin Johnson
Investor · Phoenix, AZ · Member since 2025 · 40 posts · 20 votes
11mo
From my pov, depends on what you're trying to build to & how fast you're trying to get there--that will dictate the path that's meant for you --happy to discuss some lessons learned!
0 Reply
Elealeh Fulmaran
Specialist · Member since 2025 · 483 posts · 270 votes
11mo
Proud of you for pivoting and looking for cash flow. In northern NJ, start simple: get a clean buy box for rentals (target price range, beds/baths, towns, minimum cash flow), get preapproved, and analyze 50–100 on‑market deals to learn the numbers fast; if they don't cash flow locally, don't force it—house hack a small multi or expand to nearby landlord‑friendlier submarkets. On the family house, don't guess value; get a CMA or appraisal, then explore a HELOC or cash‑out refi if the payment still pencils after stress‑testing rents, taxes, and reserves. Wholesaling is a full marketing business; if health and time are tight, prioritize buy‑and‑hold.
0 Reply
Nadeem Alamgir
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
11mo
@Drew Gar

If you’re just getting started, I’d focus on finding something local you can house hack something that cash flows.

If the price to rent ratios don’t make sense in your area, then I’d start looking at smaller out of state markets where the numbers actually work. You don’t need to rush into wholesaling or big projects yet. Just focus on getting one solid deal under your belt first.
0 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
11mo
It really depends what you're looking to do and what your skill set is. You're either going to need active income or partnerships to build a real estate portfolio.

For active income, could you work at a property management company or be a leasing agent or broker? Is wholesaling a business you believe you could scale? If yes, learn the local laws to make sure you're protected.

For less active income (some would refer to as "passive income"), without a job, you're going to need to get a dscr loan but you'll also need to have a balance sheet to take the property down meaning you're probably going to need to partner.

I would also try to see if you can improve your health issues before you start this new venture. You'll need to bring a lot of energy and commitment but it is Very achievable.
[email protected]
Brick House CPAs53 Reviews
Website View Page
0 Reply
Al Bazzy
Real Estate Agent · Livonia, MI · Member since 2016 · 32 posts · 10 votes
11mo
Hey Drew! In my experience, a good way to start in real estate is to focus on getting one solid deal first, something simple that helps you understand the process and build confidence. Wholesaling’s a nice way to learn how deals work and build connections. You might also want to look into turnkeys, they’re great for steady cash flow without too much hassle. Detroit’s been a solid market for that lately. If you’re open to discussing more about it, feel free to reach out!
0 Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
11mo
@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!
[email protected]313-221-8718
3 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
11mo
@Drew Gar to be blunt - you are NOT in a position to do anything right now!

If you are asking a group of strangers for direction, you are begging to be taken advantage of:(
It sounds like you are not working and so, have lots of free time.
How many hours have you put into studying real estate investing?
How many books have you read?
How many webinars have you attended?
If your answer is, "not much", than you need to think REAL HARD about do you have what it takes to be successful at running your own business?
While real estate can be done "part time", you won't be successful without a LOT of knowledge.
Otherwise, you won't be any more successful at real estate than you will be at a multi-level marketing scheme.
[email protected]248-209-6824
Logical Property Management4.9460 Reviews
Website View Page
0 Reply
Account Closed
Member since 2023 · 34 posts · 6 votes
11mo
Joplin, MO
0 Reply
Denis Um
Realtor · Northern NJ · Member since 2021 · 19 posts · 9 votes
11mo
Hey,
I am located in Bloomfield, NJ.
It is very tough to make anything cashflow in this area with traditional investing. I personally leverage house hacking and the Mid term rental strategy to make it.
Financing is gonna be tough without income. You may be able to get into a more active strategy with less capital required since you are looking to do this full time.
If you are relatively new to everything I would say spend some time reading and listening to podcasts. The good thing is you're here learning.
0 Reply
Al Bazzy
Real Estate Agent · Livonia, MI · Member since 2016 · 32 posts · 10 votes
11mo
Hey Drew! If your goal is steady cash flow, turnkey properties are definitely worth considering. They allow you to build a portfolio with minimal hands-on work, as the homes are renovated and located in solid neighborhoods. We’ve worked with several out-of-state investors who have returned to purchase multiple properties because of the strong returns and the trusted relationships we maintain with them. Beyond the financial benefits, they value the reliability and stability of these investments, which makes it easier to continue expanding their portfolios over time. For someone new to investing, turnkey properties can be an excellent way to gain experience while keeping the process manageable.

Feel free to reach out if you’d like to discuss more!
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.