I’m a 30 year old professional that is looking for the next step in my financial journey. I’m looking at investing in some real estate, but have a lot of questions about the timing, what order I should consider, or if this is something I should put off for a little later down the road. First a little about my financial situation:
1) My salary is about $125,000 annually. I bring home between $5400 and $6000 monthly after taxes and all of my other deductions (insurance, IRA, HSA, etc)
2) I max out an HSA every year, and am contributing to my IRA up to where my employer matches
3) My monthly expenses include: $1700 rent, $800 student loan payment (eligible for public service loan forgiveness in 6 years, payments have been deferred since March), and ~$1500 to pay off my credit card balances that I use to buy everything – totaling $4000
4) Current assets include $40,000 in a savings account and a stock portfolio currently worth $55,000
So here are the options I am considering. In the next year or so, I will likely need to buy a new car. My dream car would cost ~48,000. My alternative to that would cost ~30,000. I’m driving a 15 year old car now and it’s only a matter of time before something goes wrong that will cost more to fix than it’s worth and ideally I don’t want to put any more money into it. I am also considering buying a house. I currently rent, and have 1 year left on my lease, but would hope to buy sometime next spring/summer and move there when this lease is up. I’ve been very interested in investment real estate and am starting to consider buying a property to flip or to rent out. I have an investment partner that we would split costs and profits 50/50. We’re currently looking into duplexes in the range of ~300k.
My thought is I could put in 30-35k as my half of a rental duplex. Continue to save and buy a car in the spring. And then cash out my stock holdings and use that as the down payment on my personal house next summer. My original intention with the stocks were to grow a down payment fund, so these are not retirement savings. It is in a taxable account, so I’d like to wait to sell my positions until next spring/summer so they qualify as long term capital gains. Also, I grew up working for an interior construction company, so am very familiar with DIY renovations and have access to all the tools required.
Does this plan sound feasible? Should I consider doing this in a different order? Thanks in advance for any advice!
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source https://www.reddit.com/r/RealEstate/comments/j2xdbj/is_this_a_feasible_plan/
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