Big Decision. Need Your Opinion.

[Chris S.]

I could really use an experienced real estate investors opinion here. I'm not a complete newbie. I have 1 rental property right now from 2007 that barely breaks even (obviously not the best time to buy.. ha). I feel like, if I could get advice from my 5 year older self after knowing much more about real estate, I'd know what to do here. I'd really appreciate any help.

I'm kind of torn on what to do. I have a full time job, my wife is a stay at home mom and getting her MBA (4.0 right now;). She's willing to focus on real estate and do all the leg work, while I bring in money from my current job to fund it.

We plan on getting a new house in the next year or 2. It would be around the 450k to 650k price range (coming from a $1600/month home). I have very good credit and I easily make the income to support that. I feel like houses are about to start really appreciating.

My question is, should I buy a home w/ 5% down, get a larger amount of real estate for my money and hope for appreciation which would hurt my monthly cash flow a little, monthly maintenance would cost more, it would cost prob $15k-30k cash to furnish it. It would probably set us back 6 to 9 months on putting $30k down on a rental property and we'd also lose the investing experience.. starting 6 to 9 months later.

Or.. should I just use the money at 20% down to acquire our first buy and hold since 2007? This would increase cash flow and we'd get experience, but I may not capitalize on the appreciation that's set to come in the next few years.

I'm having a hard time finding deals where I can buy the home at 70 or even 80% ARV - rehab costs, so it would be the full 20% investment to acquire a cash flowing property. Maybe the answer lies here..

Anyway, I've been going back and forth on this for a few days. Hopefully someone can help me out here. It would definitely be appreciated. Thanks!