Need guidance on the best way to start

[Ana Patrice]

Hi everyone!

I've been lurking around here for quite a while, and am finally in a position to make a move... but I don't know which way to go. I'm hoping to get a bit of advice from more experienced investors to point me in the right direction.

A bit about me: I am 30 years old and live in Houston, TX. I bought my first rental at 24 years old, made a ton of mistakes, and somehow made good money off of it still! YAY! Then life happened. I had to sell it 3 years later, and should have used the money to buy more property. But I made a critical mistake, and used the funds to get licensed as a Realtor instead. I've finally got my feet under me again. Now a married homeowner, with an 8 month old baby girl, and a small bit of money in the bank. Husband works 50+ hours a week, and we are paycheck to paycheck. Any money I've made from being an Agent, I used to pay off nearly all of our debt and pad our savings. We are now pretty much debt free. I need to make a better life for my daughter - one that doesn't involve her not knowing who her dad is, or not having enriching life experiences because we really can't afford it. 

Financial situation:

$80,000 equity in homestead <-- But the market peaked last year, and is at a plateau now. Average DOM is 65+ days... Strong buyer market.

$30,000 in the bank for investing <--- I would prefer to not max this out though.

Credit score >800

Debt obligation/month $700 plus $1450 PITI

Annual Income before tax - $50,000

Short term Goals: To generate $2,000 residual cashflow per month in the next 4-5 years so that I can put my baby girl into a good school and have a little extra cash for trips/breathing room. (am I aiming too low/high??)

So, what do I do? I was looking into maybe selling the house and moving into a Fix and Flip for 2 years etc.. But I'm not sure how the timing for that would work? (ie. Where do I live if my house sells before we find the right deal or how do I pay for 2 mortgages??) Also, considering a HELOC to buy... a rental (BRRRR)? I just need to get the snowball rolling again... Thanks so much to everyone at BiggerPockets for all the education and help!!

[Drew Shirley]

There are tons of wholesalers out there right now picking up deals. Go to a neighborhood that got flooded and write down all the phone numbers from the "We Buy Houses" signs you see. Or google "We Buy Houses Houston." Call those numbers and ask to be put on their buyers' list, start analyzing deals for fix and flip. 

Or go door knocking. Or do postcards or door hangers. You will get calls. You just have to be ready to answer the phone.