I saved $210,000 and bought my first house 2.5 years ago...oops

I saved $210,000 and bought my first house 2.5 years ago...oops

Inspector · Voorhees, NJ · Member since 2015 · 104 posts · 47 votes

Hello BP! My name is David Vitarelli. I live in Philadelphia, PA. and I am 32 years old. Everyone my whole life has told me to save save save....then buy real estate. So that is exactly what I did! I started my own building maintenance company and saved all of my money and when I was 29 I bought my first house for $210,000 (it is nice not having a mortgage : ) . It is a duplex and I rent out the 1st floor for $1,000 per month. Back then, I thought I was doing big business but since then I have learned that there is a lot more I could have done with $210K cash! Just a few months ago, I purchased my second rental for $152K (this time I got a mortgage!) but I am still able to get $500 in positive cash flow out of the property per month. Since my first purchase 2.5 years ago, I have known that I have a passion and interest for real estate investing and this was reaffirmed again with my second purchase just recently. The debacle I am finding myself in is....what is the next step? I want to unleash my inner real estate investing renegade but I do not know how to go about it. I am very handy person and am very willing to do many renovations personally. So naturally, I am drawn to the fix and flip investing strategy. I would appreciate any and all input on this topic. By the way, this is my first post on this forum! I am looking forward to starting a dialogue with many of you!   

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Davisburg, MI · Member since 2015 · 26 posts · 10 votes
10y

@David Vitarelli, Rent out that second unit in Your duplex and find a live in flip! Or, since that is your primary, pull out some equity via HELOC and use that to fund your flips. You could have done different things with that money but you did what you did! You have put yourself in a great position over someone who mortgages 210k on a single family that only generates liability. You have 100% equity, You have cash flow, You have a tangible asset to borrow against, You have 1 less loan putting you further from the 4 (or 10) loan limit, and it sounds like You are hungry! Find a local REI group, read books, listen to podcasts, and do something every day to get yourself closer to your goals. Oh, also, set goals!

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  • Real Estate Agent · Philadelphia, PA · Member since 2015 · 49 posts · 8 votes
    10y

    Dave,

    You need to make your money work for you! You have equity now we find you the next property below intrinsic value rehab it and either flip or hold and rent. Them refi that property pull your money out and do it all over again!!!!

    This is what I every day. I help investors find their next cash flowing rental or money making flip. I use the MLS, I also have a network of wholesalers who often have some really good deals.

    The company I work for specializes in REI. We are a one stop shop.

    We can help you indentify money making properties, run the numbers with you and help you acquire it. We can renovate some or all of the property or not. You said you were handy, so you may want to renovate. After the renovations are complete we can find renters or list it for resale. We have a full service property management company to handle all your headaches from that point forward. We can offer as little or as much of our services to you as you would like. 

     If you would like to find out more information feel free to PM me or call anytime. I look forward to hearing from you. 

    All the best,

    Tim

  • Real Estate Agent · Philadelphia, PA · Member since 2015 · 49 posts · 8 votes
    10y

    Typos are curtesy of auto-correct. Sorry

  • Davisburg, MI · Member since 2015 · 26 posts · 10 votes
    10y

    @David Vitarelli, Rent out that second unit in Your duplex and find a live in flip! Or, since that is your primary, pull out some equity via HELOC and use that to fund your flips. You could have done different things with that money but you did what you did! You have put yourself in a great position over someone who mortgages 210k on a single family that only generates liability. You have 100% equity, You have cash flow, You have a tangible asset to borrow against, You have 1 less loan putting you further from the 4 (or 10) loan limit, and it sounds like You are hungry! Find a local REI group, read books, listen to podcasts, and do something every day to get yourself closer to your goals. Oh, also, set goals!

  • Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    10y

    @David Vitarelli, don't beat yourself up.  No real "oops" here. Your responsible discipline has already got you well on your way to where you want to go!

    You have found a great resource here at BP. Soak up new forum threads daily; listen to the webinars and read the informative blogs - and ask us for yea or nay reasoning for potential deals you come across. All the best for your continuing RE journey...

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