WWYD. I want to get started but unsure how
I'm looking to get started in the REI world, but am kinda in a position that, based on a lot of forums I've been reading up to this point, is a little unique ( maybe not-I'm new). I have a full time job that I'll never quit because I believe in it...it's a public service job, but It doesn't pay worth a crap right now( about 42k/ year). I have 720 credit score, low debt other than my student loans, which are about 90k. I plan on using a down payment from an old 401k plan that I have, about 7k and I am a first time home buyer. Because my student loans are so high it's hard to get a loan, and actually I'm having a hard time getting pre-approved for any more then about 70K. However, I'm in an income repayment plan and because of that my monthly payment is $0. Also, because of my public service job, in 10 yrs ( I'm 3 years in) the balance of the loan will actually be forgiven.
I'm looking to get into renting out condos eventually. I live south of Denver where it's difficult to find anything less then 170k for a condo and I need to stay in the area for various reasons. I plan to live in it for at least a year with a small family, so I plan on at least a 2b2b. After a year I would like to starting renting it out and move into something bigger. My question is, what would a seasoned investor do in a situation like this. I pay 1400 a month in rent and can definitely afford this, however the banks won't approve me for anymore then around 90k. I know there are alternate forms of lenders out there, however I'm worried about crappy rates. I have my 401K but I'm going to take a hit from the taxes and fees when I take it out, so I won't have much to put down. Any advice?
Next question is, is this a good time to buy a traditional long term investment right now in the Parker area? I'm afraid that if I buy now in a few years I'll be under water? Is the market peaking, or getting close to it right now?
Thanks for reading! And any advice is welcomed!