Just like everyone else.. Looking to buy first home

[Daniel W.]

Hi Guys and Gals, I just signed up tonight to bigger pockets. About six months back I was on the train coming home from work and got suggested a youtube video about "Evictions Gone Wrong " By James Wise Holton.  I watched it! It was about a city in Ohio (Maybe Cleveland??) and how the tenant was getting evicted by a sheriff and how they threw the tenants property to the curb. I just watched it for entertainment purposes strictly.. at least I thought.   After that, Youtube's suggestions auto-played a bigger pockets video, as well as a Morris investment videos.  The Brandon guy that is in all the BP videos seemed really like a normal genuine guy.   This kind of triggered my whole interest....      

 My wife and I (34 and 32) Have been talking about owning a home for years.  We could commit like everyone else... and be living check to check or being strapped with that mortgage.   But with our current apartment rent control situation, we have felt content and it made sense financially to keep renting.  I am also a very big saver.  I have this paranoia about saving money which my dad instilled in me. I'm not like super cheap and crazy where I"m eating canned beans, But I'm always conscious of my spending. I have a 2009 paid off used Honda civic and buy my work shirts off eBay for $15 a pop if that puts it into perspective...  :)   We are able to save about 40% of our income while still living a comfortable life in the Bay Area.  With no kids and no dog in an apartment of course...

However, the last six months I have time and time again thought about purchasing a rental property in an outside market out of state. I live in Oakland (SF Bay Area) and the prices are absolutely mental. It makes zero sense to work 50 hours a week only to spend a majority of your income on living expenses.  What's the point of life??  We only have a finite time on this earth and I want to make the most of it.

I have been looking at real estate markets from a Zillow price map and Memphis, CLE, Columbus, oh, St Louis and Indianapolis seem like you can get a home cash for 40-50K.  I am considering buying cash or at least %50 down.  I want to have a cash flow that makes sense so that when we hit our early 40's, the home will be outright paid off just from cash flow alone.  I want to start off in the "Long game" I guess you could say.

I am to the point where I can just google search Zillow, redfin etc... every night and think about...... I look at what's available for rent, then what's available for sale, then what has sold recently. I am not a mathematician but it just seems like a numbers game.  

I'm at the point in my life now where I CAN do it. And I WANT to do it. But now that I'm here, I will read a bit more and just eventually take action. I want to start small like maybe 40K Cash all in which means I'd have to finance. But looking to make like 8-10 percent ROI if possible.

What are your guy's experiences?  I see that Roofstock and other Turnkey sites have homes that are more expensive than what I'm searching for. 

Of course I need to find:

Contractors
Insurance company
Realtor/Property Manager

I am trying to avoid the middle man. Like everyone else, I want as much cash flow as possible. 

Sorry for the rant this is just where I stand and wondering what others do in this situation.