Plan of action recommendations!

[Corey Perdue]

Hello BP community!

First off, thank you in advance for taking the time to share your opinions and thoughts!

I am interested in real estate investing with my ultimate goal of building a passive income vehicle .

A little background on myself:

Obtained a real estate salesperson license after high school in 2009

Successfully fixed and flipped 2 SFH's while holding a part time job and doing all the work with my father(tradesmen) between 2011-2014

Got offered a full time job I couldn't pass up at the time in 2014

Purchased primary residence which is also a rehab/potential investment in 2015

My current situation:

A full time job that brings in about 100k a year, long hours

Own 2 properties: Primary residence(40% equity) and vacation home(100% equity)

About 50k in retirement funds(401k and Roth IRA)

Access to roughly 200k (with everything on the line)

4 years after accepting my full time job I am wanting to seriously get back into the real estate investing game with full a vengeance and am currently in the educational phase, determining which strategy is right for me, as well as researching and analyzing my target market. Reading the forums, books, and listening to pod cast all day has peaked my interest in the BRRRR method found here on BiggerPockets.

My intent is to work towards dedicating my full time focus on this business. I would love to know the route you more experienced guys and girls out there would take if you were in my shoes with the end goal in mind. CASH FLOW!

If I may ask, what would your road map would look like? What would your short and long term goals be? Multi family vs single family? BRRRR method, ect...

Any good book recommendation?

I'm open minded to any and all ideas! I look forward to hearing your suggestions and feedback! Thank you!

Kind Regards,

Corey Perdue

[Andrew Johnson]

@Corey Perdue So before I give you my perspective my general advice is:  Do what the heck you want to do!  If you want to flip, then flip.  If you want to buy-and-hold, do that.  I never think it makes any sense to engage in the whole "means to an end" process.  Example:  "Hey, I'm gonna flip properties to get $500K in cash and then do buy-and-hold!"  Real estate isn't a riskless endeavor so I'd want to get really good and where I wanted to end up.  Anyway, my monotonous sermonizing (which countless others will disagree with) aside...

1.) You make good money right now. Maybe you work long hours but the last thing I would do is engage in any real estate endeavor that will distract you from work. That's just me. Earn a great W2 while you can and use that to fun your acquisitions. If the real estate market goes south, you have a backup. If your career keeps growing, you can increase your REI velocity. And that pesky W2 also really helps when it comes to talkin' to the ol' banks about loans.

2.) If I were in your shoes (given your W2) I'd stick with multi-family properties. If you make a $100K W2 I can't imagine it's going to excite you to get out of bed in the morning for an SFR with $100/month or $200/month in cash-flow. It's still a "thing" that needs attention, no matter how little/passive, and $100/month isn't going to move the needle. Find a 10-unit that cash-flows $100/door and have tenants pay down a mortgage and at least it's something that matters. Your 10-unit "thing" doesn't require 10 times the attention than your 1 unit "thing".

I'd leave your money in your retirement accounts and take out a 60/40 mortgage on your vacation home.  It's going to be "cheaper debt" and you won't have to deal with any hassles around early withdrawals, blah, blah, blah.  And if you're that gung ho about real estate you can always mess around in publicly traded REITs with your retirement account dollars.  

Not sure if any of this helps, just one perspective.