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Thanks so much guys - appreciate the tips.

And Mike, that's a great idea about the HELOC. Don't think I'd have much trouble qualifying for one so I'll have to do some more reading up on that.

I'm assuming that it's not unusual for investors to take out a HELOC for the down payment on a rental and then take out an additional mortgage to cover the rest of the loan - is that correct?

If that's the case, I'm going to investigate rates and plug in some numbers using some properties around my area.

Thanks again.

Hello everyone-

I've been in my condo for a little over two years now and after some modest improvements, I'm very sure I have $50,000 or so in equity. I also have a FICO score that teeters around 800, but my problem is lack of cash. I have some money socked away in stocks and my retirement accounts, but I really only have $5,000 or so of liquid cash - and most of that I'm reluctant to touch as it's my emergency fund.

My question to you is this - where do I start with real estate investing? My ultimate goal is to simply build my net worth, but some quick cash wouldn't be the worst thing in the world either. My first thought was to sell my condo and use the proceeds to put into another undervalued property, sell in two years, and just repeat the process. Is this the best way to get my feet wet in REI? I honestly do not know enough right now to take huge risks. I've been reading these forums for months, but I'm still not sure which avenue I should be pursuing.

For what it's worth, I have extremely strong motivation when it comes to making money. If that means busting my *** for 18 hours a day, I do it. I have NO problem putting in the sweat-equity whatsoever.

If someone could just steer me in the right direction, I'd be eternally grateful. Thanks so much. Looking forward to your replies!

That's a great point Mini Mouse and clearly I need to give this some more though before approaching him.

Thank you for your input!

Thanks guys. I'm most definitely going to ensure that we both come out ahead of the game by splitting the profit, but I'm still unsure how to reasonably finance a deal.

Asking him to purchase a house with cash while I cover the miscellaneous expenses would be a pretty tough pill to swallow. Would there be any other way to partially finance a deal without requiring such a huge cash outlay from my stepfather?

My stepfather and I were recently talking about how well we've both done in real estate over the last couple years and how we'd like to get involved in a rehab or two. It seems like a match made in heaven, because he has an endless supply of money and I have the ambition and determination to find, develop, and profit from potential deals.

He's coming down next weekend for a visit and I'm trying to think of the best way to approach him about using his money to finance one rehab so we can test the waters. Being family, his terms are obviously going to be second to none, but I still want to make this little venture lucrative for the both of us.

How exactly would you approach this situation? What kind of payment, rate and terms would you consider fair? I'm thinking we should stay in the sub-$100k market (this would include the house and the repair costs) for now until we get our bearings.

I hope to have a proposal for him within the next week or so and I'm most definitely going to take all your advice to heart. Thanks so much.

I'm curious as to which sources should I be looking at for obtaining financing on my first flip. Fortunately, I have excellent credit (765 fico), but my meager $60,000 salary doesn't leave much left over after paying for the mortgage, car, insurance, student loans, retirement, etc.

I won't have more than a few thousand dollars to part with which I'm sure will go towards closing costs. Keep in mind that I do have an emergency reserve fund of ~$10,000 cash that I'd rather not touch, but it's there in case something takes a turn for the worse.

In a perfect world, I'd like to get a loan for the price of the house AND the cost of repairs. Am I crazy to think that a loan like this exists?

Thanks so much for your advice!

I couldn't agree more and if I do end up with KW, I plan on participating in it as well...another stream of income never hurt anyone.

It's going to be a while before I begin interviewing, but I'm anxious to know the logistics of the profit sharing plan - is that something you can share with us?

Well to make a long story short, I'm waiting to hear back about a job I was promised from a friend who happens to be the hiring manager. He said that his company is ending their hiring freeze soon and I just need to sit tight for a little while. I'm going to give it a couple months because it would be a great opportunity for me career-wise...not to mention I'd be working for one of my best friends.

If I don't hear anything within the next couple months, I'm moving on.

Virginia Beach native here currently living in Atlanta and debating whether or not to move back home.

Just wanted to take a second and thank everyone on the forums for building such an incredible resource of REI knowledge - excellent work!

As for me, I was fortunate enough to buy a condo (to live in) well under market value when I moved to Atlanta a little over two years ago and after about $6,000 in improvements, I've already seen quite a return on my investment.

If I end up staying in Atlanta, I'm planning to sell or refi the condo I'm currently living in to purchase additional real estate and become an active investor. However, if I move back to Virginia Beach, I'm changing gears, getting out of the IT industry, and becoming a full-time real estate agent. I'm getting into the real estate game one way or another!

I'm hoping to be able to make my decision within the next couple months, but unfortunately it's kind of out of my hands at the moment.

Anyhow, glad to be here and can't wait to learn the ropes from all of you!

I'd agree with the new property route, but I'd avoid huge condo projects like the plague. That's what's happening up here in Atlanta, almost everything being developed right now is a cookie-cutter condo building and people are having a pretty tough time selling them.

Is there anything on the market that's relatively new that's having trouble selling? If so, that's your opportunity to get in below market value. If not, scour your local paper for builder incentives as well as future land use plans. If you end up next to a favorable development that comes to fruition in a few years, you can cash out.