Beginner Investor Strategy for Buy and Hold
Hey BP family, I'm finally to the point of purchasing my second property (first rental property) and I've basically been following the steps as outlined: 1- get financed 2- find good deal 3- due diligence 4- make purchase 5- manage and work on exit.
Background: I started out with poor credit from college, I've gotten that taken care of. I purchased a personal home in 2014 at market value ($120k) before I learned the wonders of real estate investing. My goal is to buy and hold single family homes and multifamily buildings including small condo's and apartment buildings for wealth building cashflow within the next 5 years. My current home has appreciated to ($130k)
Strategy: I can come up with down payment funds of 25% up to a $80k purchase price.
Should I: A - Purchase two small properties that rent around $500-$600 with low tax.
B - Purchase one larger property that rents over $1k with slightly higher tax.
C - Refi my home (cashout not an option) and possibly purchase a new permanent residence with a better deal and collect rent for my home over $1.3k
If you feel there is a better way in my situation please feel free to enlighten me.
Thanks for you guys time.