Newbie w Equity- DFW texas

[David Britton]

this is my first post so forgive me if its lengthy. My wife and I bought our first home 3 yrs ago and after making repairs and upgrades, along w the market working in our favor recently, we believe we have approx. 50-80k in equity in our house. We recently decided we'd like to start investing in real estate with hopes that over the next 10 years or so, we will possibly be able to make a living doing this full time. We are very new, and very green, but willing to work hard to achieve this. And we'd really like to be able to provide and example to our four kids that you don't have to be born into wealth to create it on your own. Here are a few questions we have: Should we consider flipping or renting for our first deal? (I realize that this really comes down to our preference but I'm looking for some of your personal opinions) Would it make sense to use the equity in my home to help cover expenses? What resources should we make sure we read or watch before attempting our first deal? Should we consider proposing some form Of a split with a more seasoned investor that would be able to walk us through our first deal? What other questions should I be asking?! I don't know what I don't know ????

[Stephen Salerno]

It is in my opinion that if you are looking to build long term wealth, you should keep the asset.  Is it a get rich quick scheme? Absolutely not but over time you will achieve that goal if you build a nice rental portfolio.  There is less risk in holding on the property. Renters are normally less picky than a person looking to purchase the home. As the DFW area continues to grow people are going to need a place to live. 

An option that I see possible to refinance your current property pull out that equity that you have to use to buy  more properties.  I do not know what your finances are like that is a quick way to get come capital to start creating a rental portfolio. 

Or if you are looking to move and have some cash on hand  then you can keep your current residences and have a tenant pay off the rest of your mortgage and you will own that property free and clear sooner. However, there are some taxes incentives to keep a mortgage on a property. 

There are so many different ways to skin the cat. I hope this is helpful.