Setting the foundation to start investing, need some advice

[Timothy OReilly]

Hello BP!

I am not new to the real estate world but I am not a grizzled vet either. I want to start acquiring properties for buy and hold purposes and would like some advice on how to lay the groundwork now before I go to a lender. I'd like to start enacting a strategy now to make myself more attractive to a lender (portfolio or traditional, although I don't think a traditional would talk to me at this point.)

I have a primary residence and a condo that I rent out.

I used an FHA loan for the condo (In Virginia) in 2006

I used a VA loan for my primary in 2010 (in Maryland)

I have since refi'd both and I used HARP 2 for the condo in 2012

I overpaid for the condo during the bubble, I owe around 160k @4.5% and after rent HOA fee's I lose a few hundred bucks a year (it could be worse..) and i'd be lucky to get 135k for it. for a nice round number I assume i'm 30k underwater on it.

My primary doesn't have much equity so that's not an option.

..so what do I want? I'm wondering if any other Bp'ers were in my situation or could share the secret sauce with me on what I should do.

I have a steady Fed Govt job. I'm not concerned about my employment status.

I have money in a employer retirement account (TSP)

Would it be smart to borrow the 30k from my retirement accounts in order to pay down the equity in the home? Or would that loan be considered worse to a lender?

I'm also planning on acquiring the properties as a personal asset and over insuring them. I think this will net me a more favorable rate, highlight the 'think'

I'm open to advice and calibrations if anyone sees a pitfall here. Thanks for taking the time to help out in advance.

Not asking for a mentor, I promise.