Updated 10 months ago on . Most recent reply
Questions From a first time Investor
My wife and I are new to this and are saving for our first property our goal is to start looking for properties in November 25, we have a couple questions, would it be wise to invest out of state for our first time investment (we do plan on physically going to see the properties to potentially invest in) ? where can we find places-websites to analyze areas that will provide positive cash flow? Would it be wise to use a HELOC on our current residence to use for a down payment on a new property
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A HELOC is a short term debt instrument. If you have a plan to pay it off in 1-3 years, it's a great tool. It's not a very good tool to use as a down payment.
I am making some assumptions, but it sounds like you just don't have enough cash/liquidity to invest from a position of strength. I was in the same spot about 10 years ago. You either need to pile up more cash or give up some comfort via owner occupied investment options. You could sell your house, take that equity, and use it for a house hack or live in flip in Nashville. It's a much less comfortable home life, but it sets you up to make a great return with less risk.
Good luck! I'd be happy to help and have absolutely nothing to sell. Please reach out if you think that I can be a resource.