First Time Investing

[Javier Duenas]

Hi all, I'm new to bigger pockets pro and new to investing. I have many questions and concerns as a newbie. I'll give a quick summary of my situation. I only own my primary home in New Jersey and do not have any personal cash available (unfortunately). I opened up a HELOC which is my ONLY available funds. After analyzing a few properties on my own and now utilizing the calculator on BP, it seems that nothing will work because the HELOC payment at probably 8% or 8.5% variable is destroying my numbers. The market in NJ seems too high. I was thinking possibly start with fix and flip to make some personal cash and not depend on HELOCs. I was advised not to because of the risk and the taxes that I would have to pay on capital gain. I also thought of the BRRRR method, but again, between the mortgage for that property plus paying the HELOX back doesn't work. Do you guys have any suggestion as to what I should do, or where I should look to help purchase my first investment property. Thanks.

[Javier Duenas]

Quote from @Zachary Cain Humphrey:

Quote from @Javier Duenas:

Quote from @Zachary Cain Humphrey:

Quote from @Javier Duenas:

Hi all, I'm new to bigger pockets pro and new to investing. I have many questions and concerns as a newbie. I'll give a quick summary of my situation. I only own my primary home in New Jersey and do not have any personal cash available (unfortunately). I opened up a HELOC which is my ONLY available funds. After analyzing a few properties on my own and now utilizing the calculator on BP, it seems that nothing will work because the HELOC payment at probably 8% or 8.5% variable is destroying my numbers. The market in NJ seems too high. I was thinking possibly start with fix and flip to make some personal cash and not depend on HELOCs. I was advised not to because of the risk and the taxes that I would have to pay on capital gain. I also thought of the BRRRR method, but again, between the mortgage for that property plus paying the HELOX back doesn't work. Do you guys have any suggestion as to what I should do, or where I should look to help purchase my first investment property. Thanks.

Depending on the size of your heloc could have enough for down payment on high cash flowing rental like STR

Hi Zach, yes, I'm probably gonna start off with fix/flip to make some money. Although, now you got me thinking about STR (airbnb). I'm confused! Lol.

Only thing with air bnb the property needs to be ready to go vs. fix flip you got the flip aspect and not dealing with guests. So there are various ways you could think about it. If your going to buy and hold then I recommend STR just because the cash flow makes more sense especially when your starting out. If you're buying a property and only making 2-300$ a month then in my opinion it isn't worth the time.

I agree. If I decide to go with rental rather than flip, then  I would go with STR. I’m still on the fence, but I’m leaning towards fix/flip to make some cash and hopefully after a few, I can start using some of my personal cash rather than the HELOC. Thanks