Making my first move as an investor

[Scott Granberry]

Hey BP,

I want to tap some people for their experience on what is the best way to get to where I want to be. My first step goal is to get out of my current residence, buy a duplex to house hack, while turning this residence into a rental property (if it makes sense). I live in Round Rock, Texas where my residence has been appreciating 7% per year, right now I have about 35-40k in equity. Outside of this, I don't have much in savings. I am thinking about waiting till I have a little bit more equity to get a HELOC and purchasing a duplex (FHA 3.5% down), is this something I can do using the LOC as a down payment? For those who have experience, If you were in my position, how would you accomplish this? Also, what am I not considering? Thanks in advance!

[Jeremy VanDelinder]

The HELOC was my ticket to getting started. You (and your family) have to be comfortable with the added risk of leveraging your primary residence, but I think it is a good route to go. I don't see see things slowing down here in Round Rock any time soon, so I hate to let go of properties in this area--in fact I just sold one in another state so I could bring that equity here to this market.

Good luck! Let me know if I can be of any help to you. ~Jeremy