SFR or MFR starting out??

[David Fals]

I'm looking to purchase my first rental property and have been searching for a deal that would generate positive cash flow based on my projections. However, finding properties that would cash flow with a 20-25% down payment on 400k property has been challenging. I have some funds in my 401(k), and I'm considering whether I should cash out some of them to help with the purchase.

I want to remain local in NJ or at most drive down 1hr to PA (self-manage or, last resort, hire a PM)

However, I must also consider maintaining reserves, a safety net for my primary home, and an emergency fund.

It's just hard for a new investor now :(