Best Advice for Getting Into Real Estate

[Mario Russo]

Hello BP,

My wife and I are looking to purchase our first rental property, ideally a 2 unit multi-family somewhere in the midwest. We currently live in Minneapolis and have looked in other areas as well to invest such as Wisconsin where we grew up. 

For a couple just starting out, what would be your biggest piece of advice for us? We've been crunching numbers on various properties over the last 6 months to figure out local rents, cap rates, etc... What types of cap rates would you suggest we look for in the midwest? Would you recommend investing out of state and using a property management company? Or purchasing locally so we can be on site when needed? What's a good amount of money to have saved up before making your first investment? Should we skip the small 2-unit property and just go right to a larger unit, like a 4 or 8 plex? 

Thanks everyone, cheers! 

Mario