Help Me Spend My Money

[Daniel Pitner]

As I have posted before, my wife and I are looking to get into Real Estate investing within the next year.  We currently own our home and plan on turning it into a rental, as mentioned in past posts. I wanted to get some feedback on what you guys would do if you were in my shoes. My current financial situation is as follows: 

1) 3.5k-4k extra cash flow/month

2) we have no debt other than our home

2) Our home is worth $186 and we owe $148 on it so we would most likely take a loss if we sell

3) Our mortgage is $860/month 

4) The home should rent for around $1250/month 

Unfortunately , house hacking is not an option for us at the moment.  With all of this considered, what would you long term plan be if you were in my shoes? 

[Joe Splitrock]

Originally posted by @Daniel Pitner:

@Joe Splitrock, thank you for your reply!  That's correct. I'm banking 3.5k to 4k/month.  Currently I have 20k in liquid cash to be used for an investment/property. 

You could convert your current house to a rental property, but of course you will need a down payment for a new house for your family. If you got PMI on the new house, you could do it on $20K, otherwise you probably need double that.

Another option is stay in your current home and save up more money to get into a multifamily investment.