I have 50k from a HELOC and need advice

[Elliot Obeng]

Hi all,

My wife and I are newbies and want to make our first purchase. We have been doing our readings from Brandon Turner, reading BP blog posts/forums (so much invaluable info), and looking at properties on realtor.com. We just got approved for a heloc for our primary mortgage that we have only been in for 2 years. Our goal is to buy and hold multi family units.

We live in northern, NJ where property taxes are really high so we are looking out of state to get more bang for our buck. As we research we see that Fayetteville NC, Dayton and Cincinnati, and Detroit are good markets.

We are wondering from those who have experience in these markets, would we be able to get 2 properties and do the BRRR method? Which zip codes are ideal?

How much cash reserve should we have?

Any connections to contractors/realtors?

We would want to plan a three day trip in the area of choice to field the area and make a deal.

Any advice/ thoughts are appreciated.

Thank you!

[Anthony Dooley]

What would keep you from moving to one of these markets? Could you do your current job in those areas? There are multiple advantages to living in your real estate investing market. I know some people invest out of state, but I hope they are doing turn-key investments. Knowing your market intimately is very important when investing, especially with borrowed money. If the investment turns bad, you still owe the money. I have trust issues and I don't take big risks, so I only buy what I know and what I know that can't lose money. I recommend moving, but that is free advice from a total stranger.