Advice for a noob investor

[Cory Manoogian]

Hey everyone,

I'm looking to buy my first rental investment property in Dallas, TX (and surrounding suburbs) and I am in the process of identifying the property and doing research with lenders. My partner (and gf) is a property manager for a single investor with 100+ houses and I believe she has a pretty good handle on identifying good properties and being able to estimate how much a repair cost would run. I have a cash flow model that I use and am confident in my ability to appropriately forecast future cash flow. I have to rely on my partner for the repair cost estimates and I have included contingency costs in effort to remain conservative. 

I recently bought a house for my primary residence and have learned that my job and credit score are both a non-issue for banks. I have $25k in cash that's just sitting around and am looking to invest it. I understand that I don't have a lot of cash, and as such I am limited to buying properties that are likely under $100k due to the 20% required downpayment that is often required to get a loan.

So now that I've set up the background, here are my questions: Is $25k enough to acquire a good investment property, when considering downpayment and likely repair cost, or do I need to save up more money? In your opinion, if I buy a property, is it likely that I'll be overpaying for the property given the rapidly increasing home values?

I'm interested in receiving your advice. 

Thanks,

Cory

[Bruce Lynn]

I think the toughest feat for you will be finding the right property for less than $100K in the Dallas area.

Are there any properties you could buy turnkey from your wife's employer.   Would they like to see a younger couple get started on the path to success?   Maybe someone like that could also owner finance a property for you with less down?

If that can't work, can you stay in your current house a year, and then move to a new primary residence so you can finance as owner/occupied?   That can save your cash reserves for reserves and rehab.