Investing in real estate?

My hubby an I want to start investing in real estate but we have some debt to clear up. we are thinking of moving down to a house that would cost less (which would eventually turn into our 1st investment home)in turn this will help eliminate debt that we have. I am ok with this but im scared. we have lived in our wonderful home for 5 yrs and doing this would be a risk but we want to live in the (investment house) for about a yr and fix it up get it ready to rent then move to our dream home. have you ever heard of someone doing this or have you done this??we just need advice. Is this worth doing. Ultimate goal...eliminate debt, start investing with rental property, eventually move to bigger house.....advice please..thanks

we need to know if we should move to a smaller house and use the money for paying off debt

If the move will help you get the debt paid off then it could be a great step forward.

Be strict about paying down the debt. Do not let life's curve balls let you delay paying down the debt.

Note that selling to buy another property does have a lot of costs associated with it. If you own the present place consider just taking a second job. What you save in selling costs could be a plus. I do not know what your presently monthly housing costs are so maybe you should move in any event. Just recognize that the move has costs and the costs will chew up capital that maybe could have been used to pay the debt.

See the info below as it will help build your investing knowledge.

FIrst, you need to have money before you can invest in.
Pay off your debt before posing this question of investing in Real Estate. You will wind up in more debt.

Sell the house because it will help you pay off some debt so you can become more stable, and it will lower you DTI (Debt to income ratio), which is very important.



kmyers@lendsmartmortgage.com

what state(s) are you thinking of investing in?