All Forum Posts by: Larry M Shepherd

Someone please explain to me how to create my first cash flow property...I'll use easy round numbers to simplify. I pay $1000 per month on my own mortgage. I have 100k equity I can access for a HELOC. I open a HELOC for 50k paying $500 per month now my monthly "mortgage" is $1500. I use that 50k to buy another property for 150k which will now have another $1000 mortgage. I rent that 2nd property out for $1500 per month which I will use to pay the new mortgage and my new HELOC loan. Now my own mortgage is paid, new HELOC and new property mortgage is paid which leaves me no additional cash flow. Now how do I scale and buy another property since I already used a HELOC on my property?? Not sure if all that makes sense but I really am dedicated to learning and getting as much knowledge as I can! Thanks for reading this far and thanks for your input!

Hello Brett thanks for your reply. This is my current employer 401k.

Hello all and thanks for clicking on my very first post! I am super new to REI and excited to learn and expand my knowledge to build generational wealth for my family. I might be jumping the gun here but I am in the early stages of searching and placing my first offer on a property. My plan is buy and hold a long term rental first and then slowly evolve into short term rentals. I do not have a large down payment saved up but I have been considering making a large withdrawal from my 401k, about 35k worth. I know there will be taxes and fees I must pay to do this. Is this a very bad idea? My thinking is this...my 401k is there for my retirement but if I use that money now for REI wouldn't it be building my retirement savings anyways? Why let that money sit there with such a small return when I can use it to start my portfolio? I'm really interested in your thoughts on this. Thanks for your input!