1st Investment Property with 100k+ in equity

[Joshua Meisner]

Hi BP members,

I just recently joined the website and have been thinking of investing in rental properties for a month or so.

My personal experience is very limited but my dad has done very well throughout the years buying rehabs for cash and fixing them, then renting them for some time prior to selling them. I have used him as a valuable resource recently, to look at my excel sheets and the tools I plan to use when looking into properties/ROI on properties.

He has told me to hold off until the market changes. It is too up in his mind to start right now. I have a 50+ hour, hourly job and live comfortably. But I want to be doing the 40hr or less work week by the time I am 40.

I am self motivated, I have great basic math skills and complete ownership of my work and when I have a plan I put 110% into it. Thats why my plan is to use a HELOC with the equity on a multi with minor renovations required, gain equity and rent them, refi the property to close the HELOC and move to another project with another HELOC.

My question to experienced people, that are moving on projects right now, is it worth it to take that chance with the market up (although it has slowed around here it is still up in NH)

I do have a family and do not live paycheck to paycheck, but also feel I need to do something soon to invest in our retirement and real estate has intrigued me.

What would you do with 100k+ worth of equity? Would you invest NOW? Would you hold off until the market drops? Is there a better way to use the equity other than rentals (I do not have the time to be flipping houses etc due to 50+ hour work weeks)

Thanks for any responses and let me know if you have any other questions about my situation.

Thanks.

Josh

[Bill S.]

@Joshua Meisner timing the market is a fools game. Sure the market may be high compared to history but who is to say it won't keep going for another 4-5 years (I doubt it will do this). Where would you be then? The current data indicates that we have another 1 or 2 of upward trend and then we need to check in again because so much of where it goes from there will be determined by what happens between now and then. If you find something, buy it. It won't go as planned but if you have enough cushion, it won't matter. Perhaps an 8% IRR which is not the end of the world. Might also get 15% IRR then you would be smiling.

I don't know your area but the whole BRRR approach can backfire if lending or the market changes. Only buy if you can reasonably have two exits from the deal. Preferably three or more exits.