Getting Started in REI... But How?

[Jacob Vavra]

I know that there are 100+ posts on BP asking this same question but i want to get more specific. I am a 29 year old husband and father trying to get into REI. I will list off my financial situation below so you know more about me.

• Annual income about $85K (wide is full time mom which is important to us).
• Homeowner since 2010 - FHA loan of $143K taken with 3.5% down at 5%. Made biweekly payments since. Now have $60K to $65K in equity. Plan to move in the next two years.
• Paying down our student loans (started at $120K) beyond min payments with bonuses and tax returns since graduating. Should have them all paid off in the next year or two. Current employer is covering my grad school which I will be done with in 2017. 
• Our cars were bought used and will both be paid off next year (payment is $580 per month for both). We plan on keeping them once paid off. 
• Monthly revolving credit card debt. We use our credit cards for most expenses and i pay the full balance each month. We stick to strict budget i laid out for us.
• Both of our credit is in the 760s. Debt to income is a little high due to student loans but drastically improving annually.
• Paid for our own wedding and honey moon in 2010 delaying extra progress on other debts for a year or so. 

My question is... how and when should I get started. I would like to rent our house out when we move rather then selling. I also am looking at several foreclosures in our same neighborhood right now. We are contemplating refinancing our house to reduce payments and lower the interest rates. 

How can I get started now with minimum to put down? Should I wait a few more years and miss the low rate bubble we are in? Would you recommend refinancing current home if we are going to move in the next few years? Can I use my equity as a down payment on something else without selling?

I am pretty responsible with my money and only don't have much to play with because I am putting it all towards getting out of high interest debt. Any guidance would be greatly appreciated.

[Brandon Sturgill]

@Jacob Vavra My picture looked very similar to yours in 2013. I bought a primary via FHA, did a 1-yr live in rehab, and created about $60k in equity. I refinanced to a 1-yr ARM at 2.95% and lowered my mortgage payment to around $350/mo...minus property taxes, which I pay annually. I took a HELOC at 85% LTV on a 10-yr interest only note then shortly thereafter, moved into a primary residence closer to family via FHA. I rolled the HELOC funds into more investment properties and some repairs on my primary (which will create another $30k in equity by the end of the year). I also retained my last primary as a rental, which is completely maintenance free and generates $1,200/mo. in gross rent.

I now leverage other people's money as much as possible and have acquired some additional multifamily properties that generate solid cash flow....there is a lot more to this story, but the basis for me launching my investing career is quite similar to your current situation. I would be glad to discuss this strategy in detail, just let me know. Good luck.