Full time working mom of 3 in my 40's with 8K to invest

[Keegan Felix]

This is all very new to me, but I started listening to the BP podcast about a month ago and realized I have a strong interest in real estate investing. I'm using my workout time to educate myself daily and feel overwhelmed, but excited to get going. My goal is to create generational wealth for my family and to eventually have the financial freedom to say "yes" to travel adventures as a family. 

I'm open to suggestions for where to start investing. I have family in Kansas City, MO area so I thought that would be a good place to start since I could visit properties while visiting family. The other area I'd consider is Cleveland after listening to one of the BP podcasts and doing some research on that area. Multi-family units and investing for equity are my focuses to start, unless anyone has any other suggestions? Open to cash flowing properties too if the numbers are right. 

I have about 8K to start investing, which I know is not a lot, but with 3 kids living in SoCal, we are already pinching pennies. 

Looking to connect with other working parents who started this business adventure in their early 40's and made it work! After reading so many intros of young, single, eager individuals, I'm hoping I'm not too late to the game! 

Random question: has anyone cashed out their retirement (or part of it) to invest in real estate? Good move, or bad? 

Thanks for reading! Looking forward to connecting and learning! 

[Tim Delaney]

Congrats on getting started. I got started in RE in my late 30’s with 3 kids. I’m now in my mid forty’s. It is possible, it’s not just for young single people!

I already had my own business, some cash, lines of credit and a solid contractor as a partner which is how I have grown my portfolio so aggressively over the past few years.

Unfortunately, $8k is not going to get you very far despite the promises of no money down investing. It is possible, but unlikely and risky. Do you have any equity in you existing home (if you own it) so you can leverage a HELOC to use as an emergency fund?

I know it seems like a tough task, but can you spend a few more months or a year while you continue to learn to really tighten the budget or find ways to earn a little extra to start from a stronger position?

I don’t have any direct experience with retirement accounts as I never opted to use them so I could keep cash available for investing now. But if you are really set on RE you may want to explore options of borrowing against them or taking cash out early. I’m sure others have more experience with that.

Good luck!