$90,000 HELOC. Beginner Advice?

[Marc Rodriguez]

Hello all! I am excited to share my first post on BP. First of all, I greatly appreciate the education and discussions in the forums provided by all the members, as well as the podcast provided by the men and women of Biggerpockets! I have been consuming information nonstop for the past year, and am ready to take my first steps into the world of REI. Below is where I will begin, any advice?

My 2019 REI Goals: My main goal for 2019 is to begin building up enough capital to the point where I would have to use very little HML/Credit/ Private loans. I understand these are great leveraging tools, but regardless, I would still love to have some capital set aside to expand my investing goals, and help mitigate some risk. Eventually, like many, I would like to own several cash flowing rental properties (innovative, huh?).

Quick Info: I recently had a $90,000 HELOC pulled from my primary residence at 3.99% (intro rate). Also, I have a private loan of about $40,000 at ZERO interest (family friend, he is helping out tremendously and would NOT take any interest repayment). Altogether, $130,000 of starting capital. I am from Northern New Jersey, where it is very difficult to find a property for that much in a decent neighborhood, which is why I will also be utilizing HML, business credit cards and private investors to fund my next investment opportunity. My father is a general contractor, which is a tremendous help to the business. I will also be setting aside some of my own money to begin marketing to off-market sellers (wholesale style), in order to find a great opportunity.

My question: Seasoned investors, if you had $130,000 to invest, what approach/strategy would you use, in order to build up some capital for more future RE investments? Do you recommend the BRRRR strategy, even when using HML/Business CC? Stick to fix and flips? Both?

I understand more factors come into play when investing, and there are MANY strategies, but some general advice would be great. Thank you in advance!