All Forum Posts by: Alexander Rellergert

Hi, I’m AJ. I’m just starting out and want to get into owning rental properties. I’m eager to begin, but I’m unsure how to start. I’m considering either renting out or selling my current home. I’ve lived here for eight years and have built up some equity through backyard renovations—including a brush finish concrete patio, a gazebo with electricity, a deck, landscaping, and a gas grill. The house was already move-in ready when I bought it.

The only interior updates I could make are new kitchen countertops, possible roof repair from hail (no leaks but I’m getting it checked out just in case soon), windows, painting or buying new cabinets, painting the walls, painting the basement floor, and reapplying waterproofing (Hydrolock) to the basement walls. My plan is to complete a couple of these updates, get the house reappraised, and then pull an equity line of credit to use as a down payment for a duplex or triplex. I could live in one unit, manage the property, and fix up—and eventually rent out—the other one or two units.

Or, would it be better to just sell my house? I originally bought it for $112,000 eight years ago at a 4% interest rate, and based on the current market (though I haven’t had it appraised), its value has almost doubled. If I buy a multifamily home and don’t use my equity, what kind of loan should I get?

Alternatively, should I Airbnb my house? I’m 15 minutes from downtown Saint Louis Missouri, less than two minutes from a highway, in the county, decent school district, with plenty of restaurants nearby and a gas station within walking distance—it’s a great location.

I feel like I have three different options to explore, but since I’m new to this, I’d really appreciate some advice and guidance. My goal is to pursue this as a way to generate passive income so, over time, I can cut back on my electrician job—or at least work just enough to keep my health benefits and insurance. I want to save my body and not spend the rest of my life on a ladder, while working toward financial freedom. I just turned 30 and I’m ready to start taking things more seriously and figure out more ways to make money using my hands-on skills. I’ve been a union electrician for 10 years now, so I’m used to hard work and figuring things out. Any help or advice would be greatly appreciated. Let me know if I’m on the right track. Thanks guys.