My main goal of 2024 is to purchase my first investment property (2-4 unit). Currently I own a home which I purchased at the end of 2020 with a conventional loan, 2.62% interest rate and 20% down. I have about $30k in the bank with approximately $80k that could be pulled out of my primary home with a HELOC.

The main reason I am looking to invest in real estate is to escape the rat race, get out of a traditional W2 job so I can spend more time with my family and become overall financially free. My current income is around $60k a year with limited time off per year and 50 hour weeks.

With my long hours and non flexible schedule, it has been taking time/energy away from what is most important in my life; my family. I have considered changing paths from running a team at a warehouse to becoming a real estate agent. Though I know real estate agents aren’t hourly/salary based, I am great at building relationships and relating to people which seems to be a must if you’re looking to become a successful realtor.

The benefits (or possible benefits) I see with the career change like this is

1. I would be leaving a stable job with good benefits. However I would be able to get a job with similar pay if I needed to get back into that W2 lifestyle after leaving (Minimal risk in my eyes).
2. Having a much better work/life balance instead of having such a militant schedule to where I feel I am unable to enjoy my life outside of work.
3. As I am making money I am learning more about real estate and also building relationships with people in the industry which in turn would help me become successful in my long term goal which is to be a full-time real estate investor.

With such a big change in careers, my idea was this. Instead of using my $30k saved up to use as a down payment for my first 2-4 unit, I would keep that as my financial cushion while I make the switch to becoming a real estate agent. I understand that I may not make much money the first few months so I feel it is important to have a bit of a financial safety net. I would then use a HELOC to fund the down payment of the first investment property while still at my W2 so I am able to still get a loan from the bank.

***I have ruled out FHA loans due to it or working with my family situation

What do you think about this plan? Would this work? Is this the smart or best route to take? What are the pros/cons? I’d love to hear everyone’s thoughts.

Thanks everyone in advance!

Minneapolis, Minnesota

2 Votes