First Time Buyer: Strategy and short sale

[Justin Vincent]

Hey there Bigger Pockets community,

I'm looking to get into real estate investing. I have a buyer's agent and have been pre-approved through my lender. My goal with real estate is to build wealth, and have no living expense all while doing part time property management. [Long term goal is to have 7-figure equity to leverage within 8 years. Very specific and measurable ;) ]

My strategy starts with a multi-family owner occupancy. My agent and I are going to a couple walk throughs tomorrow. However, a property just came up that meets my ideal criteria (pricing, 4-2bdr/1ba units, campus area ie: Less vacancy). This property is listed as contingent upon lien release. I have assumed this means short sale, is that accurate? Would buying a short sale be possible for a first time buyer? Does this seem like too much risk for my first time buy?

I have an automated pro forma that calculates direct expenses (PITI) and indirect expense estimations (10% Maintenance, 10% vacancy). Based on this and $600/unit which matches campus demand, the property will cash flow really well, a product of short sale and unit demand on campus.

(I want the cash flow so I can start getting more properties that can support that 7-figure equity leverage goal. My strategy will eventual turn to higher valued properties that may produce less income, but are safer and accumulate equity faster.)

This is my first time posting on the site, I apologize for any ignorance in what may seem like common questions or what may be redundant on the forum.

Thank you for your insights,
JV