I'd like to hear from anyone with experience in this market.

We’re young home owners and with the way the market is looking we might not be able to afford another home if we wait. 

How is the RE market currently?

Study the market.

I've also seen people who squirrel money away and then lose it in the stock market or some other investment like strips or something . 

are totally different markets.     

I’m in Austin, and while I’ve got interests all over the country, the Texas market is close to my heart.From the numbers, it seems like you're sitting on a solid cash-flowing asset.

Our local market is still very competitive if in good condition, good location and priced right.

Other participants would ‘applaud loudest for the “largest” nothing down purchases, regardless of whether or not the purchase price paid was well above market value, had a large monthly negative cash flow, or was a property that had no other use than as a “recreational” lot.  

. #2 is also a good way to find off market deals which is where you can save the most even if it's just buying a house direct from the owner w/o an agent.