First Time Home Buyer Advice

[Luke Instein]

HI

Hello, new to BP here! I just graduated from college and have been absorbing as much information as I can. I have a full-time job and have just been approved for a loan. I just want to know if I am making good decisions. I am an impatient person by nature and very eager to get in real estate investing. I don't have enough cash saved for a 20 percent down payment (just paid off all my student loans) so I am doing an FHA loan at 3.3 percent. I have been looking at houses for about a couple of months now and I found a house listed at 109,000 that doesn't need any work done to it at all. Move in ready, new floors paint and appliances. I would have loved to have found this when it was just needing minor cosmetic work, its a 3 bed 2 bath with a basement (unfinished) 1,100 sqft. My concern is I might be buying too high, but after talking to different property management companies and using rentometer I'm confident I could get 1,200 a month. After factoring in 150 a month for property taxes, 100 for management, 60 for repair/maintenance, 120 for insurance, and 60 for vacancy, I could potentially cash flow 240 a month when I rent it. But After closing costs and everything else when I close I'll only have a couple thousand left. So, should I look for something cheaper where I can build equity? Where I live there are not any affordable multifamily in my price range. What would be the best way to acquire rental properties quickly by buying my first primary residence. Also worth noting the listing agent put this in the description. Not sure how I should interpret this. "This home could attain a 12% cap with over 1k, month cashflow"

 I would live in it for a year have a roommate to offset my mortgage payment (not enough to cash flow) and eventually move out. I don't know what the smartest decision after that would be. I'm quite overwhelmed. Is it a bad investment to buy a house that doesn't need any work? Am I going to miss out on a lot of equity? My goal is to acquire cash flow properties. But if I bought a house a fmv, would I have enough equity to refinance? That's probably a dumb question but I am still learning, just excited and want to start real estate investing. I would appreciate any advice thanks!