What would you do?

[Peter S.]

Hello BP,

I am just getting started in REI and looking for some advice. My strategy right now is to get into buy and hold to start and then expand as I learn more.

I own my home, have about 179K of equity as based on my last appraisal in 2013. My 401k and Roth IRA are maxed out each year, I also have the option to buy employee stock at a 10% discount, up to a maximum of 15K per year. Right now I am putting 5% of each paycheck into that vessel and can pull it at any time, the only issue would be potential capital gains taxes.

I estimate that I have about 10K of liquid money right now to get started, plus the options above. 

As I live in a highly priced market, my biggest issue right now is capital for a downpayment. What do you think would be the best plan to get started.

Thanks for any and all replies and advice.

[Joe Villeneuve]

First, if you live in a high cost market, don't invest in that market for Holds...it most likely won't cash flow.

2nd, you should start with flips to increase your cash position.  Once you reach a point where you have the cash to get into multiple deals at the same time. then you start buying holds, and refinance you cash out of them to reinvest in the next set of multiple properties.

That's where you start.