New investor needing direction on how to invest $300k from condo

[Maria W.]

Hi, new investor here. Like many new investors, the current housing market has made it really difficult for me to know what is a good purchase because I don’t have a lot of tools on my belt to make something work.

I currently live in Navarre, FL which is a beach town 30mins west of Destin, FL. My current house is close to the beach and I have AirBnb’d it when I’m out of town.

I have a 3/1 condo in Springfield, VA (just right outside DC) that I have completely paid off and its current value is ~$315K. It cash flows $2k/month. I'm currently working with a realtor from Bigger Pockets to explore my best options for selling it either now with a tenant in place or in the spring ~April 30th.

My long-term goal is to replace my current W2 income with investments so I can stop working. In this ever-changing market, what are the best strategies for me to consider in reinvesting the money from my condo sale so that I can purchase other investments and scale up year by year? I work remotely, so I can declare a new primary every year if needed.

[James Dainard]

Quote from @Maria W.:

Hi, new investor here. Like many new investors, the current housing market has made it really difficult for me to know what is a good purchase because I don’t have a lot of tools on my belt to make something work.

I currently live in Navarre, FL which is a beach town 30mins west of Destin, FL. My current house is close to the beach and I have AirBnb’d it when I’m out of town.

I have a 3/1 condo in Springfield, VA (just right outside DC) that I have completely paid off and its current value is ~$315K. It cash flows $2k/month. I'm currently working with a realtor from Bigger Pockets to explore my best options for selling it either now with a tenant in place or in the spring ~April 30th.

My long-term goal is to replace my current W2 income with investments so I can stop working. In this ever-changing market, what are the best strategies for me to consider in reinvesting the money from my condo sale so that I can purchase other investments and scale up year by year? I work remotely, so I can declare a new primary every year if needed.

Hey Maria,

Can you pull a HELOC out on the condo and structure it so that the rent will quickly pay down the balance?
You can use the HELOC money combined with a low down owner occ to go after a multifamily if you're looking for more units or a larger SFR if you're looking for something more specific.

Best of luck!