30 year old trying to position into full-time real estate

30 year old trying to position into full-time real estate

Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes

First off, thanks for taking the time to read my post! I am in the process of making some real estate moves, but I am getting a little overwhelmed by my options and a little unsure which path will be best for myself and family. The ultimate goal is to build enough passive income to not be reliant on my 9-5, to gain more flexibility and control in my career, and to be able to leave behind assets for my wife, daughter, and future kids.

In short:
1.) I work full-time as an engineer but am studying to get my real estate license soon. I would be willing to jump into real estate brokerage full-time, but am afraid leaving my current industry will make it difficult for me to get many conventional loans for two years. Therefore, I am not sure if I should wait and continue to stay in my job until I get things rolling, this will limit my time and flexibility which could go towards rehabbing/flipping, but my income will be steady and I will be more bankable.

2. I have roughly 100-120k in equity on my house here, it's halfway through a 15 year note and cash flows about $400 rent minus mortgage. I was informed by a couple banks that in order for me to get a HELOC on it without refinancing, it needs to be my primary home, at least until I get the credit line in place. So it looks like I may need to move back in there instead of buying something else such as a house-hack or fixer-upper. I am not opposed to moving in there, but it feels like I could maybe seize a better opportunity.

3. I was planning on getting the HELOC to have "cash" to put towards investment properties, as a down payment and for rehab cots. Is this a pretty common strategy and one that would be good for my situation? I am capable of doing a lot of rehabbing myself, but will limited with time if I am still working full-time.

So I am trying to figure out if I move back into my primary and get a HELOC, then look for investment properties from there. Or, continue to rent it and look for another opportunity and see if I can pull some equity out of the house without having to refinance. Then, do I stay at my job so I can be more bankable, or do I jump to real estate brokerage and commit to real estate from every aspect and figure out the lending options after.

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Will FraserPro Member
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
5y

If at some point it becomes possible or prudent to do all of the above, I'd recommend it :) 

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  • Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
    6y

    @Forrest Faulconer

    You should be able to cash out refinance much of that equity value without moving back in. I would recommend that over moving back in just to access a HELOC, unless you want to for another reason.

    Personally, I would hang on to the regular 9-5 job as you get another property or two under your belt. With an engineering job, and a high savings rate, you should be able to add a property every year. 

    You do not necessarily need to become a real estate broker to get a firm grip on the market. It may make sense at some point, but it will likely be clear because your 9-5 will be holding you back. It doesn't sound like thats the case now.

    Good Luck!

  • Member since 2018 · 200 posts · 123 votes
    6y

    @Forrest Faulconer I agree with Daniel.  Hang on to that 9-5 engineering job.  I know you feel like it's holding you back now but there are a lot of advantages to having it as you build your portfolio.  Once you have a few more properties under your belt the transition to full time real estate may be smoother.  

  • Will FraserPro Member
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    5y

    If at some point it becomes possible or prudent to do all of the above, I'd recommend it :) 

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