New Investor - Cashflow Properties

[Hunter Murphy]

Hello Everyone,

I am a 24 year old mechanical engineer living in Santa Rosa, Ca. I am living with family, debt free and my biggest goal in life is to own rental property; However, I don't exactly know where to start or how to find decent deals (with the market being as high as it is). 

 I would love to start by owning single family long term rental properties with the goal to generate additional cash flow (Ideally 1k a month).I've heard for rental property loans you need 25% down and it appears my only option here is to save up for largest downpayment possible to minimize monthly expense (to achieve the 1k cashflow).. 

Eventually, I would like to get into duplex's/short term rentals but I dont think I have the downpayment for that with the markets I am researching (Santa Rosa, Ca/Scottsdale, AZ/Tempe, AZ)

If anyone has any advice for me on how to get started I would greatly appreciate any feedback/experiences I can get.

Best,
Hunter

[Michael Belmore]

Hi Hunter, 

If you don't mind living in the property I would recommend doing a "house hack". Use a FHA loan and get a multi family home up to 4 family as your primary residence.

That way you only have to put down 3.5% as opposed to the 25% target you have in your head now. 

I would recommend reading Brandon Turners Investing in Rental Properties book. 

- Good luck and if you need anything reach out. 

- Mike