Hello all,
I am graciously seeking input and guidance on an entry strategy that best suits my unique situation.
I am 35 and the owner of a 1000sqft 2 bed 1 bath starter home that I bought for 150,000k in 2020 at 2.75% interest rate.
Although I know the home I live in is no asset, I see its cash flow potential if I can be living elsewhere. All in, my mortgage is $1,100/ month and all comparables are renting for $1700/ month in my subdivision.
Here is where my story gets complicated. Since 2020 I have gotten married, had 2 children, taken in my grandmother in law and have a 3rd child on the way. We have certainly outgrown our little slice of heaven. I have quite a bit of equity in this house that is now valued just south of $180k however the thought of giving up my precious 2.75% rate for a HELOC makes my stomach turn. My cash savings are pitiful, sitting just around $5,000 as all I have to show for years of saving every possible penny.
I make a decent salary of $90,000/ year at my day job as a project manager for a real estate development company in downtown Houston. That is a beautiful thing for a single income household but is nowhere near enough to reach the financial security and lifestyle I would like for my family. I am fortunate to be surrounded by knowledgeable brokers, agents and hard money lenders but feel I need a solid plan in place before I attempt to tap the resources around me.
My main dilemma is on financing my first investment property, as I do not have the funding to pay 20-25% down on a loan for investment. I’d struggle to come up with the 3.5-5% down on an fha or other low down options.
My family and I are completely on board for an owner occupied/house hack option, however I see this could be challenging, being the landlord downstairs or next door with 3 screaming children; banging on walls and the likes as most children do. This would not be an ideal situation for any tenant and I feel I need to put the idea of house hack aside unless I can find a unique property that has multiple standalone units, one large enough for my Brady Bunch and potentially several other units to offset the note. This would be additionally offset by the $600 in cash flow from renting my original home.
Although I know my situation has its downsides, I know there has to be someone here who has overcome similar hurdles. If you have the chance to read my long winded post and have insight on alternative ways start my REI journey please respond or feel free to DM me. Any and all input would be so very appreciated.
Thanks so many!
-John Anselmo
