advice for new investor

[Ryan White]

I live in virginia in a region with a heavy military population (which makes me think long term rentals could be a good option in my area).  I've got $40k-$50k saved up that I'm looking to invest with.  I also refinanced my current home last year to a 15 yr mortgage (in an attempt to pay it off faster).  I have an estimated $100k in equity that I could pull out with a cash out refi if I wanted to refinance again and increase my savings to around $150k.  Would I be better off leaving my current home alone (to pay it off sooner) and investing in 1 rental property with my $40-$50k or would it make more sense to pursue a cash out refi, convert back to 30 year mortgage, and see if I can purchase 1 or even 2 investment properties with the extra money?  I'd also appreciate thoughts on whether short term or long term investment properties are a better approach (or one of each) for someone in my situation and near military?  Unfortunately, I'll likely have to put 25% down because I can't pick my family up and move, so I know that limits me to an investment loan and way more upfront capital than I'd prefer.  I'd appreciate perspective from more experienced investors on what you recommend I should do.  

Thanks for the help!

[Monique Pett]

Hi Ryan :) 

You should speak to a loan officer about your options, I know plenty of people that put down 3-5% on loans. I'd also recommend getting more properties like 2-3 instead of just thinking of 1. 

You could try using hard money and finishing somewhere where you put 15% down and use them to fund the rehab as well, then refinance with a mortgage company. 

Definitely use wholesalers, they will get you the best deals. 

You also could try for a DSCR loan, those loans take into account a tenant paying and as long as there is cash flow they will give you the loan.

Try with what you have first, then refi and keep going before touching your house. Just my .5. 

Monique