New investor wanting to buy with debt-to-income is to high

[Sergio Rodriguez]

Hello Everyone,

I want to start investing in homes preferably buy and hold at the moment and but I have two problems: (1) my debt-to-income ratio is at 59% due to student loans and a car note; (2) my down payment money source will be borrowed from my 401k. I just turned 25 so I believe I can use my age as an advantage and take the risk of using my 401k. The first thing I'd like to buy is a 2+/2 Sf home and have two tenants rent. I live in Fort Worth, TX and there are plenty of families, young professionals, and students that live in the area seeking a place to rent. 

This is where I need counsel. 

Should I pay off more of my debt and if so how much? 

What is the law in Texas for buying and leasing a SF home after a home purchase? 

Is a 401k a conventional way for source of a down payment? 

Thanks for the help and Happy New Year!

[Diane G.]

@Sergio Rodriguez

This is about 3 months ago... My gf was in the midst of buying her first home and her debt ratio was too high... So she sold her car, and uber for 2 months until COE... got her ratio down and closed the deal... She is now happily living in her home, got a new used car too...