Where would you live before starting RE Investing?

[Account Closed]

Hello BP, here’s my personal situation: Fresh out of the military Living with significant other A good chunk of debt No savings I’m reading Set For Life, and I’ve read Dave Ramsey’s Total Money Makeover. With that said I’m leaning towards the initial slow start of paying off bad debts, and only getting into RE once I’ve saved capital and only have some low interest debts remaining. My main concern for the immediate future is where to live. I’ve found probably the cheapest apartment rent for 700 here in San Antonio that’s in a decent location and isn’t run down. However, that might need to change because it’s across the entire city from where I’ll be working here in a few months. So I’m left with a few options: -Stay and eat the cost of commuting -Move in a more expensive apartment or home to rent -or use my VA Loan to buy a property to live in with 0% down. I’m kind of against the last one because I don’t have any sort of capital to cover unforeseen expenses like repairs. If I try to get a duplex and house hack, I run in the same problem with paying for unforeseen expenses with a tenant I’ve thought about new construction as well, but I don’t see the benefit in that, as it will cost me nearly double what I’m paying now, and slow my progress on paying down debt. Obviously at the end of the day this is my decision, but I’m curious as to what you might do? Looking forward to your insight. Thanks!

[Rick Pozos]

Hey @Account Closed, 

If you have read a few of the guru books on debt, I think you know what you need to do. It is time to start doing it. Stop spending so much on eating out, get a part time job or bring in some more money somehow. As you start to live a life where you consume less, you will find that you enjoy time at the park, walking, bike riding, hanging out with friends (NOT at the bar or club) you will start to have all kinds of extra money to invest in real estate.

While you are doing all of this, start letting people know that you are looking for people who are behind on their mortgage or taxes or are getting divorced so that you can find some great deals. You dont have to have a bunch of cash in the bank to start investing.

You mentioned you are sharing an apartment. There are great places to live all over the city of over 1.5 million people. Your apartment does not need a swimming pool, gym, club house, etc. If you are in such a tough spot with debt, you are not going to have to sacrifice a little, you are going to have to sacrifice a LOT.

Sorry for sounding tough, but I believe in change to make things happen.