Hi all. Been lurking here for a few weeks now, thought it was about time to make my mark. I hope this post is in the right spot. If it's not, can a mod please move it? The Mrs and I are keen to become property investors. We've read a few articles, visited a few websites, spoken to a few investors and lenders, discussed it with each other at length, but really we are just at the beginning of the process. A little bit about us... We are married with a 1 year old boy, both 26 years old and live in a smallish house in Pakenham, Vic. We bought this house about 4 years ago new as a house and land package, and finally finished it off recently. Man it was a lot of work, but we got there. We owe just under $200K on our mortgage, and based on prices in my street I estimate our house is worth about $270-280K at the moment (I haven't had an official evaluation done). Our combined income is around $70-75K, I work locally and earn 75% of that total, the Mrs is self employed, works from home part time and looks after our son. We only have the 1 car (I don't need one as I work close to home), but that car has about $20K owing on it. We also have about another $8K of credit card debt, a lot of which was spent improving our house. I know one of the things standing in our way for any potential investing is those smaller debts. The credit cards don't worry me particularly. 8 grand can be covered off fairly quickly (6-8 months). The $20K car loan is another matter. I know the simple thing would be to sell, but I spent a fair bit of money converting it to LPG and putting new tyres on it so I am very reluctant to sell. I purchased it as a long term car, and would like to keep it if I can. I've reached a point in my working life where my earning potential has probably peaked. I work for a small firm as a draftsman, but have no formal qualifications. I enjoy the work and the proximity to home, but am worried I will be "left behind". 55K a year is great when you are in your early 20s, but I don't fancy sitting back and watching all my friends surpass me as the years go by. Due to our financial situation, it's difficult for me to study as we rely heavily on my income. So I decided that investing in IPs might be a better way to create wealth. We have recently been approached by a building mob (Mega Homes), asking us if we were interested in a house and land package. I was quite reluctant to deal with a company that came and found us (in my experience you have to go out and find the good deals yourself), but having been thinking about IPs and income a lot lately, I scheduled an appointment which we had on Saturday. I was expecting a pushy sales pitch which was why I was surprised when it was simply a casual chat with a really nice bloke. Even more surprising was that the deal sounded quite good. Guaranteed tenants (you start paying your mortgage when the tenants move in). Compatitive finance (despite our current debts). Find your own land. That's not to say I will go with them, but it did help me to realise that it's not impossible to get into property investing. He even said it was possible for us to our roll our current debts (credit cards and car loan) in with it. This got me thinking. Logic would say that it's best to reduce those debts as quickly as possible. But in the time we are doing that, the property market will probly have increased in value, making it harder to get in. We're thinking of investing somewhere in or around Pakenham. It seems to be a decent place for investment. Based on some basic sums i've done, I estimate that shortfall for the mortgage would be $150-200 per week. Obviously we can't afford that as things stand now, but if we were to roll our other debts into one of the mortgages, then that would change. That is pretty much what I am paying on the car. I know our combined income is relatively low. How much of a bearing does that have on getting into investing? Will lenders even consider us in our current position? I'm yet to speak to any, and quite frankly i'm a little scared of being laughed out the door Which road would you take? Knuckle down and pay off debts? Or throw everything in the ring and get in the IP market ASAP? From what i've read so far, there seems to be a lot of smart people around here, so i'm looking forward to seeing what people make of my situation. Don't pull any punches. For the sake of my son, I want to get us into as strong a position as I can. I've pretty much missed the boat when it comes to a big earning career, so hopefully IPs can provide us with some wealth... Thanks guys!