Debt

[Scott Rowsick]

Hey All,

This is perhaps the one question that, without a clear and concise answer, stops me from getting the ball rolling with investing.  My fiance and I are recent college grads with significant student debt.  After taxes, our yearly incomes, together, make our debt-to-income ratio about one-to-one.  Also, due to our family, work, school, and life circumstances growing-up, our current savings is in the mid-four figures.  So things are tight.  Month-to-month cash flow is comfortable--we certainly aren't destitute--and we both work full-time.  Circumstances are never excuses, however, the situation "is what it is", so to speak.

What is my best plan of attack in this scenario?  I've looked around and haven't found a similar discussion, so I'm asking for a little bit of help.  My original plan was going to be the following; wholesale for a few years in order to pay down/off debts.  Continue this to build-up 3-6 months worth of expenses and a down-payment on a buy-and-live home.  Continue this for longer to save up for fix-and-flips, and continue until opportunities emerge in multi-family markets.  The economies of scale in multifamily residential attracts me.  I believe this to be my long-term niche.  

What would you do in my shoes?  What are my possibilities for the here and now?  And, although I'm sure of your answer to this question, I feel as if I must ask it; Can I do this? 

Thank you all again.  As always.

Scott

[Luis Becerra]

@Scott Rowsick well first off congrats on making a decision on deciding to take action of getting out of debt and into real estate investing. @Dawn Young had the best advice imho so I can't really expand more on what she had to say, other than buying and living in a duplex is how I starting my investing career, and I'm a testament that the strategy she is proposing TRULY works. 

If I were you I would definitely pick up the book she recommended, The Millionaire Next Door, but also pick up two more books:

The Richest Man in Babylon 

&

Investing in Duplexes Triplexes and Quads by Larry B Loftis

Also consider buying Dave Ramsey's book too The Total Money Makeover. Excellent source in getting out of debt by the way. 

Most importantly though, once you decide to pull the trigger in this, that is if this is the route you decide to take, don't forget to come back here to BiggerPockets and ask for advice with each step that you take. 

Good luck! And don't forget 1-4 unit multi family homes have FHA financing available with as little as 3% down!!!