It’s awesome that you’re already thinking strategically about getting into real estate early on, many people wait years before taking this step, so you’re ahead of the game.
You’re right about Dallas being a competitive market, and finding cash-flowing houses in good areas under $300-400k can be challenging, especially with rising interest rates. However, there are definitely opportunities if you stay flexible and informed.
Condos can be a good way to get started in real estate, especially since the lower purchase price and potential for a smaller down payment can help preserve your savings while giving you an entry point into the market. Also Since you plan to live there for 3-5 years, it’s easier to manage and maintain, giving you time to learn the ropes of real estate.
That said, be mindful of high HOA fees, as they can eat into your margins and affect future cash flow. Also, consider the potential for appreciation and rental restrictions, as some HOAs have rules that might limit leasing later on.
Given your $20k starting point, a condo could work well as your first step into real estate, especially if you focus on one with a manageable HOA fee and potential for appreciation. Living in the property allows you to take advantage of owner-occupant financing, which is often more affordable than investment loans. Plus, the 3-5 years gives you time to gain equity and learn the market, setting you up for your next property.
Good luck!
