Property Investment Decision Just Starting Out

[Peter Khoury]

Hi All,

New to the real estate investing arena and very excited to start my investing journey. My wife and I currently own a home in the Phoenix area, current outstanding mortgage of 231k with a property value 350k conservatively. I am interested in a long term buy and hold strategy and interested primarily in single family homes . I am looking to purchase a home in a "B" or "A" neighborhood that hopefully provides more stability and lower tenant turnover. The price range I had in mind was on the order of 200-220k. I have about 20k in cash and was considering taking out a home equity loan to help finance the initial 20% down payment. Most likely half cash and half home equity loan. I am torn trying to decide if this is the route to take or if I should hold off and try to save up for the down payment all cash. I feel the price of the Phoenix market continues to climb I may be priced out in the near future. Alternatively, I could look at smaller properties further out of town where I could afford more of a cash down payment or perhaps townhomes/condos but I worry about the HOA costs and less potential appreciation for these types of properties. Really looking to get some thoughts and advice as I start my investing journey. Thanks in advance!