Am I ready to take the plunge?

[Alex P.]

Hey friends,

Thanks for welcoming me into this amazing community! I've had a desire to buy an investment property for a long time now, and I finally have the income to make it happen. But am I financially ready?

I'm Alex, 31, from MA. I currently bring home about $4000/mo and my expenses are about $2000/mo. I own a home, and just took out a HELOC for $41,000. I owe $147K, with a $1,100 monthly payment (included in expenses above). My only concern is my lack of liquid savings, about $5K in all. I do expect to get at least another $5-7K for an annual bonus plus tax returns.

I'm open to look at any investment property, but ideally I'd like to purchase a Cape Cod vacation rental. There are a few from $100-200K with various HOA fees. My idea is to use my HELOC for a down payment and get another mortgage for the rest. Would it be realistic for me to buy one of these seasonal rentals and make enough to cash flow positive from nightly/weekly rentals?

Another option would be to buy a local duplex, but i think it would make expenses much tighter.

Any thoughts or advice is welcomed! Thank you!