New member in Austin

[Irene Virag]

Hi everyone! I am totally new to real estate investing. I'm mostly just soaking up knowledge right now and haven't done any deals, besides buying our own house that I currently live in with my husband and two young boys (ages 5 and almost 2).

I just want to make sure I'm not crazy for thinking this is a good idea. 

We currently owe almost 100k in student loans and wet have a mortgage of 240k on our house.   I'm looking for a way to get out of debt faster. I'm also looking for a way to secure our retirement and pay college for the boys so they won't have to take out loans like we did. 

I have been looking at estate in the Austin area for years and the values have gone up tremendously. There's no way the numbers could work for us here..? 

We currently have 30k in savings and I'm itching to invest it in something. We also have loads of credit available, including an LOC for 8k and 3 credit cards with 0 balance with limits of 15k.

I have been looking in smaller towns within 1.5 hours of Austin and I found some rehab properties in Waco for 30k. I also found some near Killeen for the same price. 

I know nothing of these areas so I'm not sure if they would be wise investments or not. 

What are the main questions you ask yourself before buying an investment property?

Thanks!

[Berkli Jo Boudreau]

@Irene Virag

Welcome to the real estate investing world! I'm new to the game as well, I've been at it just over a year. I'm also right here in ATX. I agree that books and these very forums are the best place to get started. BP has a list of the best real estate books for your investing. I would start with Brandon Turner's "How to Invest in Real Estate with No(and Low) Money Down" and just work your way down that list. Definitely come to Austin REIA meetings too, if you want more info on them, I'd be more than happy to give you the details. There's tons of meet ups all around town too, great places to learn and network.

I’ve heard numerous success stories from investors who started in debt and used real estate as the vehicle to escape, and then build wealth. It’s been done and can be done, you just have to be more cautious than someone with hundreds of thousands sittin in the bank.

I work as a bartender, so I didn't exactly have a huge reserve. I did my first deal with $0 of my own money! I found, then followed the lead, got in under contract, then partnered with a more experienced investor(that I met at the REIA).

If you’ve got a good deal on your hands, the money to fund it WILL come.

This can be an overwhelming business. Real estate isn’t complicated but it is expansive, not a mile deep but a mile wide. It will probably feel like you’re drinking from a fire hose for first few years (I know I still do). Like anything else, the key is to keep trying. Most leads aren’t deals, and ALOT of offers don’t get accepted. Keep hunting for and following leads and keep writing offers. Don’t get discouraged, this works!

Good luck!