My Plan: Please poke holes in it :)

[April C.]

Hi BP,

I have been researching, reading and listening to everything I can find in REI for the last few months. I feel that settling on the plan to follow is the biggest hurdle. I am pretty sure I now understand my investment goals. Pipe dreams or possible?

My primary goal is to create generational wealth and future financial freedom by investing in Real Estate, specifically the STR market. My secondary goal is to have a few nice homes my family and I can vacation to several times a year near our home in Austin, Texas.

My background is I own a home with significant equity, a business I started that does not require my personal full time involvement (my husband is full time however which we would like to change), I own the office property that is rented to our business in Austin. We have about 50$k cash saved to invest. We have credit ratings around 830 personally and business credit ratings in the 530s.

My plan is to use our cash to put a downpayment on our first STR in Canyon Lake Texas and pull the remainder of the loan as a cash out refinance on our current home - IF we do not qualify for a standard loan as an investment property/vacation home. AIRDNA shows 40k ARI and the purchase price is $250k.

We would budget about 10k on furnishings. Ideally, I manage to start then turn over to a manager down the road. Assuming it all goes well- buy another in a different city.

Questions and thoughts welcome!

April