non homeowner starting out

[Bob Cobb]

Quick explanation of my situation before I get to my question(s). I currently live with my parents, and am sitting on about $150k that I've saved. I'm looking to buy my first house in the next year, just not sure where. I work online, so I can technically live anywhere. I really want to get into real estate investing in some way. My plan right now is to either buy a duplex and live in half, or a normal house with a basement apartment and rent that out. I want put enough down on the house so the rent covers the mortgage, but that will all depend on where I live, since some markets that I like are a bit pricey.
Any thoughts on this? It probably seems like I could do more with my money, but I'm rather risk averse and would prefer to have the security of my own home before I really invest in other stuff. My thought is that I would use that first home/duplex as my first full rental property, and I'd be able to save up for another property fairly quick with that rental income paying the mortgage.
Tons of info here, Im reading around like crazy. Thanks

[Jon Holdman]

No way would I want to live next to my tenants.

Do some reading in the Rental Property forum, especially those sticky threads at the top. Most often, the best rentals are not really where you would choose to live.

If you can work anywhere, consider moving to a low cost area. There are lots of cities in the central part of the country where you could buy a nice house for yourself and a few rentals and have cash left over from your nest egg.

When you read those stickies you'll get a better idea of the real expenses for rentals. If you work through the math, you'll often find its more profitable to buy three or four rentals with fairly large down payments and mortgages than just one with cash. If you have documented income, good credit, and enough cash for 30% down payments you're in a good position to find great deals.