What would you do in this situation?

[Ken McGinty]

Hello Bigger Pockets People,

I found the BP show earlier this year and love it. I have been reading and listening to everything I can get my hands on. I have made some big changes to allow myself to save a lot of money this year to make this happen.

I am looking to get started with multi family units in the Phoenix area.

What would you do in this situation? This is where I currently am.

$25,000 in the bank

$149,000 is my current mortgage at 4.25% (son lives there for now, not me, but it will be a single family rental in a year) 

Should appraise for $220,000+ if I wanted to cash out some equity. This is based on recent sale of exact model in my community

$889 monthly mortgage payment includes tax + insurance (son is paying this + utilities)

850, 834, 824 credit scores

No bad debt

No car payment and driving my current car until the wheels fall off.

$250 per month for rent. I’m living with my future wife. She loves the idea of investing in rental properties.

Getting close to 50% savings rate on a $65,000 salary

$30,000 in retirement account but don’t want to touch that just yet 

A good friend who’s a realtor sends me leads for properties under $250,000 just to see what’s out while I save.

I am willing to put in sweat equity

Any suggestions would be helpful!

I think I would be a buy and hold guy. Don't want to fix and flip. 

Thanks for taking the time to read this! Any suggestions would be very much appreciated!

Ken