All Forum Posts by: Wayne Clark

Hello everyone. I am a newbie and looking into beginning my investment career. I have listened to several podcasts and audiobooks, I've read several forum posts on Bigger Pockets and social media posts in different groups, and have talked to a few of the local investors in my area, and I feel like I have a decent grasp on beginner investing. My wife and I are wanting to start with an STR investment in our local market (Upstate South Carolina), and would just like some advice from more experienced investors, based on our current financial situation.

As of right now, I don't have a huge savings, around $5k. My credit score is decent (low 700s). I do have 1 mortgage, with around $80k-$100k in equity in my home. My DTI is somewhat higher than I want it to be, and is not where my local lender wants it to be to offer conventional lending. I am employed, and also run a side service business that will begin profiting Spring of next year. I plan on leveraging that profit to reduce my DTI, but I have to wait until the busy season starts. My wife is a newly licensed RE agent and has only had a few closings since she became licensed, so I want to leave her income out of this situation for the time being, as it hasn't been as consistent.

My question to you is, what would you do our shoes to get started investing NOW? I have read over and over to not wait, to jump in now and get started. But, I am not sure the best way to go about it. I don't want to be too risky, as I do have a family to look after, but I also don't mind taking some chances. Do I take out a HELOC? Do I refinance my home? Do I wait and pay down my debt to get my DTI lower so I can get conventional lending without taking equity out of my home? What would you do?

Thank you in advanced for any input you can offer.