1st Investment Outside of Owner Occupied Restidence

[Ryan Anders]

Hello all,

I am new to the real estate investment game and am trying to get my bearings for what is best for my family in this high-interest market. We live in the Houston area. Initially, my wife and I thought about the fix-and-flip strategy, but when speaking to a realtor specializing in investors, he did not believe that was wise due to the area's high-interest rates and DOM. 

I do not want to take out a long-term high-interest rate loan that requires 20-30% down for a rental that will net me $100-300; that doesn't achieve my goals. I can take out an equity loan, but by the time I do that, a mortgage and a HELOC would surely put me in a negative cash flow for the rental. However, a turnkey rental may be the safest and most straightforward way to start, but my goal is to replace my monthly expenses with real estate pretty aggressively. To do that, I need to be able to come up with large sums of money.

For those of you who flip, what do you say about this market? Is a flip for a newbie in this market a good way to raise more funds for passive rental?  Is it unrealistic for my main focus to be cash flow on rentals instead of equity in a market like this?

Any feedback is welcomed.

Thanks,

Ryan