Where should I begin?!

[Augustin Tommy Jr.]

Hey BP Forum, I have a question that I’m having a tough time answering and figured I’d ask you wonderful people so I could get out of my own way. So I’ve currently live in a hot market (Austin, TX) and have been trying to get started investing, mainly looking at out of state properties (In Augusta, GA) that I could buy and hold. Mainly trying to do the BRRRR strategy in that market to take full advantage of the limited funds I have. However! Life (and my wife and I) had different plans and decided to bless us with the opportunity of having our first child (yay!). I’m currently renting where I stay so on to my question. Should I remain steadfast using my limited funds to invest out of state to purchase a cash flowing property? Or should I be trying to use the funds I have to either house hack a small multifamily property in my market or 203k live in flip a property to actually own a property for that transition? I‘m mainly concerned about how the debt to income ratio and obtaining loans for the primary residence may be more difficult to obtain if I begin with the investment properties first.

[Alina Trigub]

@Augustin Tommy Jr. Congratulations to you and your wife on having your newborn! 

In terms of your plans, if you're thinking of staying locally then you should consider the so-called house-hacking strategy of buying a residential MFH (2-4 units), with living in one unit and renting out the rest. Figure out how much these cost in your area and see if you can afford. Also you maybe eligible for FHA loan - check the terms! If this option is off the table for you right now due to insufficient funding, then I suggest you make money while continue saving by either flipping properties or wholesaling in the meantime.

Best!