how do i start in buying properties for cash flow?

[Ben Meracle]

ive got the idea down, just not sure where and how to start. buy a 4plex, live in 1 of the units and rent the other 3 out for cash flow, from there using the money from the first 4plex to invest into more properties. rinse and repeat. currently ive got a small amount of savings, no income besides unemployment and a bankruptcy about 3 years ago. 640ish credit score. any information helps.

[Jeff Schemmel]

Hey @Ben Meracle!  I can offer a few pointers to get you headed in the right direction.

1.) the most important thing if you've got little cash is to get consistent employment.  No bank will give you a mortgage loan if you can't demonstrate about 2 years of consistent employment.  That goes for hourly, part-time, full-time, salary, whatever.  Be consistent, stick with it, get paid.

2.) unless you're a veteran or some kind of doctor/physician, no-money-down options are pretty much off the table.  To owner-occupy, there are often down payment options ranging between 3-5% that make a lot of sense to get started.  I recommend getting a sense of what down payment you need to get a property and start there.

3.) try not to get too stuck on a 4-plex.  sure, that'd be great, but getting A property is your single biggest hurdle ahead and 4plexes are more expensive and you have more to bite off and chew on as a new landlord than owner-occupying a duplex, for example.  I'm not saying forget it, i'm just saying in your position getting a duplex in 2023 vs. getting a 4-plex sometime in 2024 is much better.

4.) you make your money in this business while you wait.  take a close look at where the majority of gains come from in the long-haul.  You might cash flow 200/door  once you move out of your first house hack, but you'll make WAYYY more in appreciation during that first year.  it's equity you can't immediately tap, but that's why I say you make money while you wait here.  That's where the real wealth is.  the cash flow will most-often get much better as time goes on.

5.) once you get consistent employment and you have a reasonable sum for a down payment, start connecting with lenders who are also investors.  they can offer insight into how to creatively finance your first, 2nd, 3rd property so you buy right the first time and you can start to develop partnerships with these people.  They can provide great insight into different types of investing, connect you with other investors, contractors, realtors, etc who can help you along the way.

in my experience, cash flow is a little over-hyped.  Yes you want it, and I don't think you should buy a property that doesn't - but I do know that people miss-out on otherwise great deals or they wait too long to find something that hits a certain high number.  The best thing you can do is work out your own deal analysis and know the numbers intimately.  you will realize quickly where the money is made and the best way to get it.  I find a lot of new investors who just want to punch into a calculator someone else made and I think this is a mistake.  They go in not realizing the math behind the return indicators and they are upset when it didn't turn out as they wanted or when the deal doesn't pencil in as they expect.  Making your own calculator can help you simplify everything and build muscle-memory so you can spot a deal when you see one.  I spent months analyzing a dozen or more properties per day until I got it in my head without checking.  

I could go on forever about this.  this is probably more than you need to hear right now, but hope it helps a lot and good luck out there!