Am i biting off more than i can chew?

[Michael Cornfield]

Hey All,

Looking to get my footing in real estate this year and my goal is to have 3 properties by the end of 2024. I've been researching and studying the market. I currently rent and my first property is going to be a duplex, 

My main goal for my first property was to just get skin in the game with a relatively safe longterm rental property to start building experience as a landlord without drowning in additional problems, while I look to find more solid 2nd and 3rd deals in 2024. I also made a checklist for what this property needed to satisfy.

- After all expenses, mortgage, insurances, utilities, maintenance, cap ex, etc... to generate at least 50 dollars a month (i know not a lot, but i felt it was more important to just get started rather than sit around for the perfect deal and get discouraged)

- Property requires minimal work to be move in ready, minor cosmetic only (max 1500 dollars)

- No ghetto's or sketchy neighborhoods

- No major upcoming captial expenses.. water heater, roof, etc..

So I think I found the property that satisfies all of those criteria (pending inspection), but I discovered that there was a work in progress ADU above the detached garage (3rd unit). It already has gas and electrical out there, but no water. Its currently just bare bones framing with one light and entryways. To me, this is huge potential and is very exciting, but i also know that this is going to be a lot of work and a lot of money... more than I personally currently have available. That's not to say I can pull out a construction loan or get an investor, which I'm very capable of and I'm more than willing to put in whatever work I can on my own to bring costs down. This brings me back to my original question, am I getting in over my head for a first investment property?

Thanks in advance!