Finding a way to start....Need advice!

3 Replies

Good Morning BP! I've posted a few times and got some really great responses. Here is my dilemma now. I currently own a home that I love. As I look for ways to get some doors in my portfolio, I'm thinking ahead. I currently have 80k in positive equity in my house. Here is my question. Should I take out that equity to purchase my first property? My other option is refinance and use a line of credit for a down payment. ultimately, I want to move to a new home and rent out my current house. What is the best avenue I should take? Thanks in advance for your answers

Good morning Farris,

Great question! You seem to have a few options here.

I'd say, start by getting in contact with a local lender and real estate agent. They'll be able to lay out some of your options in more detail and help you choose the best option for your next move.

If your current property could provide positive cash flow once you refinance and move out, that is a great option.

You might then want to consider getting a 2-4 unit property via FHA loan, live in one unit and rent out the rest. You'll be able to live free OR substantially lower your own monthly living expenses. I like this strategy because it allows you to get into your next investment with 3.5% down as an owner occupant.

Your local investor-friendly realtor would be able to give you more insight as to which areas to look into once you've been pre-approved by your lender.

Best of luck to you!

-Abel

@Abel Curiel makes some very good points house hacking in the way he describes maybe you best option. It is also important to check out the local market.  The best advice I have received is to do it.  Don't wait around and see what happens.  Just get out there learning about your market and put that equity to work once you have a solid play.  A good realtor and local banker will be key.  Step one is getting out and meeting people.  Best of luck

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