looking for advice, starting out
Good afternoon!
First off, I want to say thank you for reading this and spending your precious time helping me out.
I'll start by laying it all out there.
As most of us here at bigger pockets the idea of working until 65 doesn't exactly appeal to myself or my husband. I am an RN at a major local hospital and he is an HVAC journeyman. I'm 35 and he 32. We live in a Midwest City, OK, right across city lines of Oklahoma City. We have two children, a slew of pets, and two properties. Our previous home is now being occupied by family members who pay the mortgage, nothing more. Not an ideal situation but it is what we agreed upon with child care and the situation that was at hand about four years ago. We want to retire my husband ASAP, knowing full well that will take a few years. I enjoy my work very much so I don't feel so strongly to retire necessarily as soon as possible but would definitely like to acquire financial independence ASAP.
My husband was the one who first brought up the idea of rental properties and/or flipping about four or five years ago. I wasn't able to 'hear' him at that time or understand what he was even so worried about. I started my education into this endeavor about six months ago after having the realization that my husband had years before; I do not want to work until 65, I want to be available to the ones I love, I want financial independence, I want freedom, (and so many more reasons) and I knew the path we were on wouldn't get us there. I've been reading Robert Kiyosaki's books, podcasting, and generally trying to read and absorb as much as I can. Now we are thinking more about rental properties and BRRR strategy as apposed to flipping.
Finances, here we go. Currently we have $8,500 in credit card debt, way better than the $20,000 we had in the spring. All of which is currently 0% interest after a balance transfer we did earlier this year. Both our vehicles are paid off but are going to need another one soon. We do not have any savings. We have basically been working paycheck to paycheck for years, certainly while we've been trying to pay down the credit cards. I have about three years worth of money tracking that I've been watching to see where money is going and make changes etc. We both have great credit scores so approval for mortgages and loans won't be an issue I believe. However we currently don't have any money saved for down payments or what not.
My biggest concern is that I feel like I'm missing some sort of baseline knowledge. I read and listen and frequently I feel like I don't understand terms, acronyms, or concepts. Truth be told, contracts and all the verbiage just get me confused. I don't have a strong understanding of equity or ROI or how to even tell if a deal is good or not. (I'm aware a lot of people have these same question.) Being that this is so foreign to me, it is very possible I'm just psyching myself out and actually know more than I think. Or I truly do need a real estate investing for dummies book.
Another confession, today is the first day I have gotten on BP website and not the mobile app! The mobile app is great but doesn't even compare to the online page so I will be going through the forums and blogs since this is such an easier way to maneuver around. Any tips would be helpful. I'm still trying to understand how this site works.
Sooooooo many times the advice guests give on BP podcasts is just do it, take the first step, stop letting your fear stop you, I wish I would have started earlier, learn from experience. I'm ready to take that first step and would love to buy a rental property by the end of the year.
A few questions I have:
Should we pay off the debt before trying to get a rental?
What about turnkey? I've gotten a ton of info from the epic real estate investing podcast and cash flow savvy.
Is it realistic or feasible to buy a house by the end of the year?
Should I find a mentor?
What is the first step or thing I should do?
I've gotten mixed recommendations with seminars and meetups. Some people swear by them and other people don't. What do you think?
Lastly, I'll tell you a secret. This is my first step. This is my daily goal. I'm sitting here already excited and wondering what responds I will get. I'm trying to have patience and understanding for myself and realize that this is a process and I have already learned so much in a short time. I am capable of doing this and I am just so incredibly thankful that there are these books, podcasts, websites, and people out there to learn from. I know this was a long read and I thank you for reading it. And thank you to Bigger Pockets for everything. I am excited for the future and there is no way I could have learned everything I have without Bigger Pockets.
I'm happy to answer any other questions anyone may have!