I saved $210,000 and bought my first house 2.5 years ago...oops

[David Vitarelli]

Hello BP! My name is David Vitarelli. I live in Philadelphia, PA. and I am 32 years old. Everyone my whole life has told me to save save save....then buy real estate. So that is exactly what I did! I started my own building maintenance company and saved all of my money and when I was 29 I bought my first house for $210,000 (it is nice not having a mortgage : ) . It is a duplex and I rent out the 1st floor for $1,000 per month. Back then, I thought I was doing big business but since then I have learned that there is a lot more I could have done with $210K cash! Just a few months ago, I purchased my second rental for $152K (this time I got a mortgage!) but I am still able to get $500 in positive cash flow out of the property per month. Since my first purchase 2.5 years ago, I have known that I have a passion and interest for real estate investing and this was reaffirmed again with my second purchase just recently. The debacle I am finding myself in is....what is the next step? I want to unleash my inner real estate investing renegade but I do not know how to go about it. I am very handy person and am very willing to do many renovations personally. So naturally, I am drawn to the fix and flip investing strategy. I would appreciate any and all input on this topic. By the way, this is my first post on this forum! I am looking forward to starting a dialogue with many of you!   

[Mark Tomes]

@David Vitarelli, Rent out that second unit in Your duplex and find a live in flip! Or, since that is your primary, pull out some equity via HELOC and use that to fund your flips. You could have done different things with that money but you did what you did! You have put yourself in a great position over someone who mortgages 210k on a single family that only generates liability. You have 100% equity, You have cash flow, You have a tangible asset to borrow against, You have 1 less loan putting you further from the 4 (or 10) loan limit, and it sounds like You are hungry! Find a local REI group, read books, listen to podcasts, and do something every day to get yourself closer to your goals. Oh, also, set goals!