How to Invest in Duplex/Single Family Homes in Expensive Markets

[Josh Koukal]

Hi!

So I am looking at getting a duplex for my first rental property (living in one unit and renting the other). If you look at my other post, it'll pretty much describe that in the Greater Seattle Area that housing is pretty expensive especially off construction worker wages. I am looking at getting an FHA or VA loan to fund the property with the low to no money down financing (since most lower end homes will be 300+K, so that means 60+k down payment). But whenever I do the math for any rental properties to see the cash flow and how viable of an investment it is, the math never seems to work out in my favor. Now I am doing this by hand (figure its good to get the practice) but no property that I know of (correct me if I am wrong) will rent for 3-6k a month (using the 1 or 2% rule to screen properties). Is there something I'm missing? Any help would be greatly appreciated.

-Josh Koukal