a newbie's next move

Thanks for all the great information that I have received from reading countless posts on this site. This will be my first post on this site please bare with me. I have flipped two homes in three years.(I guess thats not considered flipping) I have lived in both homes, and had a full time job with each flip. I now have $30,000.00 dollars cash, 0 debt, and my credit score is 764. Keep in mind I have a wife and two children before you suggest which of the options you think i should take. If you like, make your own option.

Option 1: buy a $60,000.00 foreclosure in good area. With current mortgage rates, taxes, and insurance I came up with a monthly cost of $526.00. I believe I can rent this property for $800.00 to 950.00. 3 bed 2 bath SFH. Save money from current job and live in an apartment. Let the place pay for itself. Sell down the road. The money left over after the mortgage is paid, will pay for a portion of the rent where i will be staying.

Option 2: same as option 1, but instead of renting a apartment take out the equity of $60,000 + $30,000 cash, and buy a home for permanent family residence. Separate my rental into a L.L.C.

Option 3:5 plex $120,000. Live in one unit rent the rest out. Other four units generate $400.00 a month. mortgage, taxes, insurance $900.00. I am not seasoned in averaging cost to maintain the property, but i do believe there will be positive cash flow. No work needed after purchase. I realize that this will qualify as a investment property when financing is concerned.

options 1 and 2 enable me to have my daughter and son in a great public school system. Option 3 makes me have to send her to a private school which costs $5,000 a year, but is a great school. I kind of feel guilty about moving my family around so much, but everyone seems happy. Open to all opinions. More than likely I will play it safe and go with option 1. I am only 26, and have plenty of time.

Sorry about the length of the post.

I’m in the same boat as you: 27 years old, $0 debt, 750+ credit score and $25k + cash (no familiy or wife). I would suggest an owner occupy as it seems to be the best way to A.) get a better interest rate by avoiding commercial lending (but 4 plex not 5 plex) B.) Pay on your own property instead of someone else’s C.) Keep closer tabs on your property.

Keep in mind I don’t own property yet. I am educating myself and saving $.

Good luck!

I believe you have to seperate your personal life from your business. Do another flip or rental as an investment and do not live in the property. Once you do this 1 or 2 times, the floodgates will open and maybe you will be doing 3-6 properties a time, quit your fulltime job and have improved networth and cashflow. If you are hesitant, find a credible investor with a successful track record and partner on the first few to learn and acquire comfort.