Hi All,

Name: Arjay Vergara

Age: 26

Occupation: Mechanical Engineer

Location: Central Jersey

I have recently gotten married back in August.  My wife and I were fortunate enough to purchase our first home together (single family -- ranch) with a conventional bank 30-year loan with 20% down.  We both got hooked on the idea of real estate investing after we both listened to one podcast.  We are very interested in the buy-and-hold game for passive income to eventually earn enough passive income to quit our day jobs (obviously with realistic goals knowing it will take years).  

Looking around the forums and based on general knowledge, NJ seems to be quite difficult to invest in as far as rental properties due to high taxes.  We were thinking of possibly investing in Charlotte, NC since we know someone there who might be able to help us on some level.  But realistically, we will most likely be interested in investing out of state with no personal contacts other than referrals, through hopefully the BP forums, or reviews online and by vetting them out over the phone.  I understand it is a bit more risky but doesn't seem impossible to do.  We also thought of Grand Rapids Michigan based on the forums and other top 10 lists of hot real estate markets.

Do you guys have any advice for a newbie, first time investor looking to invest out of state? 

• Any suggestions on finance strategies for someone with an existing 30 year bank mortgage?  We ideally would like to put low money down or if we can find a market where our NJ/NY dollars go a longer way.
• Would using our existing mortgage be a great way to finance our first deal by using a home equity loan?  Or are there even better strategies out there?
• Both our parents have some extra cash but I am a bit reluctant to ask them especially on our very first deal.  But if you guys think it is a great strategy and has many benefits over other finance strategies, it is definitely not out of the question for us to ask our parents.
• Lastly, can you guys explain how you guys get the 2nd, 3rd, 4th,... rental property works as far as financing?  I assume I can use a home equity loan to finance my first deal.  Once I acquire that first rental property how do I come up with funds to get the next deal assuming I use some money down at some point.  For example lets say I have 10-15k i want to use of my own money to invest.  I use that money for a down payment and any repairs to get the property 'rent-ready'.  After I acquire that property and start get it rented out,  how do you guys quickly come up with funds for the next one?  Or do you guys rely on your day jobs and wait until you have enough cash again to fund the next deal?  I want to plan to acquire properties at a steady but quick rate but I am a bit lost on how the financing aspect works.

I am so glad that we were able to stumble upon the podcasts and these forums.  We are both very excited to learn about real estate and network with as many of you guys as we can.  I look forward to being active on these forums and hope to eventually be able to contribute just as much as many of you are at this point in your journey.  Obviously, we have to start somewhere.  Thanks in advance for all your help!

- Arjay