I want to start investing in homes preferably buy and hold at the moment and but I have two problems: (1) my debt-to-income ratio is at 59% due to student loans and a car note; (2) my down payment money source will be borrowed from my 401k. I just turned 25 so I believe I can use my age as an advantage and take the risk of using my 401k. The first thing I’d like to buy is a 2+/2 Sf home and have two tenants rent. I live in Fort Worth, TX and there are plenty of families, young professionals, and students that live in the area seeking a place to rent.
This is where I need counsel.
Should I pay off more of my debt and if so how much?
What is the law in Texas for buying and leasing a SF home after a home purchase?
Is a 401k a conventional way for source of a down payment?