Looking for advice and/or opinions
My wife and I are trying to figure out our next move. Below are a few scenarios we are exploring based on owning our current residence free and clear. We have about 105k in equity available and about 135k in w2 income. Long term goal is to leave our current jobs to be free to focus on investing and have financial freedom.
A) Use equity (HELOC) to purchase a run down property and apply the BRRRR concept for a buy and hold. The refinance and repeat.
B) Use HELOC to pay off all our debt (car loans, credit cards, etc) about 43k. Then find a SFH or MFH to purchase with a 203k loan and rent our current home to pay off HELOC and part of the 203k.Then refinance new home after a year to transition 203k loan into 30 yr. fixed. Then possibly find another 203k property, rent the 2nd home to pay for mortgage.
C) Find a SFH or MFH to purchase with a 203k, rent current home to pay 203k loan, and then shortly, there after, use HELOC from our free and clear home to purchase a fix and flip or BRRRR. Complete this and repeat.
I really want to believe that we had an ahha moment thinking about these scenarios but I want to ask for the anyone to poke holes through these thoughts. Are we missing something? Obviously the goal with the 203k is to find a great deal so that the ARV really gains us some equity to keep the train moving. Any other obvious scenarios that we are missing? Thank you in advance for your thoughts and/or suggestions.
Pete and Dee