1st home or 1st investment property?

[Jack Martin]

First post! Thank you for having me. Here is my introduction and issue I'm facing breaking into real estate. I grew up in Austin and make 35K freelancing. I expect my income to increase gradually each year. I know remodeling and help manage one property that I do not own for extra income. I want to buy a house to live in but can't afford Austin, my own hometown. I have 25K to put down currently.

My options/problems seem to be:

1. Continue to live frugally and rent (problem: hard to get ahead, lack of privacy)

2. Buy a house in another affordable town or state (problem: my work network is in Austin, would be hard to start over, plus I'm not too happy living in Texas unless it is in Austin)

3. Buy a property in another town/state as strictly an investment property (problem: where do I live? continue renting a room here?)

I'm not keen on condos after my research but my mind is not closed. Any property investment savy people have any ideas? It's a good problem to have I admit. I am grateful to at least be in a position where I can take action soon... but also frustrating that I am being squeezed out of a city I'm from. 

Any advice appreciated. Thanks!

[Steve Rozenberg]

@jack martin

This is a very tough but very common challenge that many people face.  Deciding which way to go with a decision like this can be very tough because there is really no one that is going to give you a play book on what or how to do this based on your life and your personal needs. And there is no one to tell you are making a mistake. I think the best thing you can do is educate yourself as much as you can by being in BP community, watching blog videos, reading books etc.. Making no decision is better than making a wrong one at this point in your life is my thoughts. I know because I purchased a lot of homes when I first got into this industry and made some major tactical errors. The only thing that saved me was that I had a high paying job as an airline pilot. What that did not save me from was the mental stress and sleepless nights knowing I made and was continuing to make some huge mistakes and I did not know how to fix them. This is something I wish no one has to endure... Had I educated myself more and came up with a plan and goals of what I was doing this for, these purchases and things that I did would never of happened. Taking the time to sharpen your mental axe and educating yourself before you start swinging it is the best thing you can do for yourself. Good deals come and go everyday if you are educated enough to know what a good deal is you wont jump out of fear of missing out of something. 

Again this is just my personal opinion from my mistakes in hopes you or other people do not have to go thru what I did to learn my lessons.