After a long period of talking with different people and watching many podcasts and videos, I am ready to move forward. I have one property (Condo) in NJ that my sister and I rent out. This property was my mom's prior to her passing (full equity). It currently has a $750 cash flow. I am currently 49 and recently unemployed. I have a opportunity to buy a like condo in the same community for around $65-$70k. Taxes are reasonable as is Maint Fee. These properties are typically valued around $80-90k. This property would conservatively cash flow over $700 as well (with full equity). Since I currently have no W2 income, I am considering pulling the needed cash from my IRA. Like many people, I typically was against doing this for the understood reasons (Taxes/10% penalty) etc. Due to the low price and timing, my full strategy is the following:
Buy the property (all cash deal)
After getting employment, Cash out refi this property to purchase 3-4 more properties.
Cash Flow on the three to four new properties will be $350 per unit (total of $1,400-$1,750)
Would like to get some feedback. One of my goals is to get to my freedom number within three years.
Thanks
Glenn
