Looking for insight and expertise strategizing my first move

[Evan Corsolini]

Hey everybody! Looking for any advice, insight or strategy to launch into REI. Our goal is to have enough semi-passive income to be able to home school our son from first grade on if we decide to (2030).

Currently living in a SFH for just over 2 years with my wife, 2 month old son and 2 dogs. The house is small for us, 2bd/1bth, 1100 sqft, so we need more room. We have 60-80K equity, only about 5K saved that is liquid, and right now are saving between $500-1000/month.

Our current mortgage is $1300 at 3.5% and we can probably get $1800-1900/month at most if we turned it into a long term rental(would probably need some minor rehab to get that), so cash flow could theoretically be $175-325/month if we made it a LTR.

Debating between

• Purchase another SFH with FHA and keep current as rental
• Sell current home to finance SFH purchase with intent to live and flip/BRRRR

If we sold our current home, the profits would likely be enough to fund the down payment, pay for rehab costs and possibly have extra money for a future property. If we kept it as a rental then we wouldn’t have those funds and would need to save for likely 6+ months, but we could have some cash flow and all the other benefits of a rental property.

I am looking to gain as much momentum as possible with this first move and then scale quickly with the minimal cash we have. Which option would be best to help me achieve our goal by 2030?

[Alan Asriants]

Quote from @JooYung Choi:

@Evan Corsolini 

I am currently doing a BRRRR right now in Philadelphia. You could try finding a distressed property in your local area and renovating it into your larger personal residence. You would be leveraging your current home's equity to buy and renovate a large home to your liking. And when it's all said and done, you would have a nicely renovated home (your new primary) and a cash flowing rental.

BRRRR a multi family deal that you live in is a great hack

You can cash out up to 95% LTV in some cases.

The hardest part is finding that BRRRR

They wont be on the "market" or on the "off-market"

this is likely a deal you have to source yourself