Cash Management Help to Fund Next Property Acquisition
Hey BP Community,
Recently graduated and have been in the working world for just under a year now and am seeking advice on how I should be allocating money. My goal is to acquire my next property in the next 3 years. Further context below:
Current income is around 82.5k.
Assets:
- 10k in a ROTH IRA
- 15k in semi-liquid investments
- 12k in cash
- 2.5k in a 401k
Liabilities:
- Mortgage of 197k on my current unit
- 1k in student loan and retail debt
I am currently house hacking in a 2 bedroom condo. My company offers a decent matching program, but I am wondering what % I should be putting away for that? I am currently allocating 10% pre-tax to the 401k but considering bumping this up to 15%. I am also taking 10% of after-tax income and routing that into a savings account to have cash available for my next property.
At this point, I would like to buy one unit in a triplex and build enough equity to purchase the entire triplex. How would you allocate the income to prepare for this? Is there anything I should be contributing to that I'm currently not?
Happy to hear any thoughts, similar stories, etc.
Thanks!