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Updated over 8 years ago,
Start investing with home equity as stsrter
Will be closing on our first home in a couple of weeks as we have purchssed from my father.He has gifted us $40,000 in equity and financed $40,000 with 0 % interest leaving us with a $100,000 morgage. The house appraised for $185,000, is around 6 yrs old and shouldn't need any major repairs for a long time.
Combined income of sbout $75,000 with good benefits (my job),pension,401k match,insurance.We have about 5,000 in savings and some debt in student loans, vehicles, small 0% interest loans for furniture and wedding rings. No credit cards. No kids yet.
I have always been interested in real estate investments but never had the finances to back it. Now that I have acquired this equity I'm wanting to go to work with it.
My short term goals are to uze the equity to provide a down payment or finance the whole property. I would pref. Multi-family properties) use the investment to provide additional income to help provide a better life for my family and help us stay on top financially as we grow and have children. Also providing money to back additional investments.
Long term goal is to grow to about 20+ units to provide enough income for early retirement alongside my company paid pension.
I am not doing anything for about 6 mo. So we have our budget down pat with the new house and to learn as much as I can on here.
***I also have a friend that is interested in doing business as partners and would be first timer also, he has about $10,000 liquid assets. I'm interested in this to lessen the risk if something goes wrong ans he is also a expwriemced caepenter and i only know somw basix skills. What would be our best financing options? Split a morgage, use my equity, private investors ? Should I just go in by myself ?***
My market is in Western Kentucky and southern Indiana with Evansville being the largest city.
Thanks guys !!! I have already learned a ton and look forward to your advice!