What would you do???

[Thomas Straub]

If you had a "large" amount of cash saved up, zero debt, minimal monthly expenses, a 6 figure W2 job, and were 22 years old looking to start ASAP, how would you start? 

I believe my best course of action is to start by maxing out my conventional financing limits on 1-4 unit properties in my targeted areas out of state that provide great cash flow. Please correct me if I am wrong but I think cash flow is the most important measure to maximize early on. I would consider myself a moderate to high risk individual and plan on learning as I go forward but want to be smart and very realistic with LTV ratio and not setting myself up for failure.

Love to network and plan on diving into investing by early spring time. Would love to hear any creative investment strategy that you did or wish you did when you were young and starting out!

[Aaron Flake]

@Thomas Straub

Perfect! Then I think you should continue living there and purchase a multifamily home. Talk to investor friendly lenders and see what they think you can get approved for. Since you purchased the house as a primary residence I believe you need to live there for a few years before you can legally make it a rental property.

I got my start by purchasing my primary residence as a foreclosure back in 2012 before the market took off. Purchase price was I believe $133K and I put about $20k into the rehab. It's now worth around $400k in my market. I took a HELOC out against it last year and BRRRR'd my next property. Purchase price on that was $305k and after a $15K remodel a couple months later it appraised at $455K and is cash flowing $500/month. Currently looking for my next property, likely a MFH. I also have a 6 figure W2 job as an engineer for Boeing with a baby on the way so I'm not quite ready to make real estate my full time job yet, but eventually that is the plan.