First Time Buyer/Investor Questions

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Hi All,

So I know I will probably get flamed for asking the same questions that have likely been asked many times previously, but I felt I have exhausted the search feature for now.

I am looking to purchase a SFR or MFR as an investment, and would like to be cash flow positive from day one. Obviously upside appreciation would be nice, but my main priority is a place to diversify some of my holdings (all in stocks, bonds, and cash right now) with real estate, while making a steady, reliable income from the property from the onset. I was already approved for a 450k mortgage with 20% down at a 4.25% rate, but likely only want to spend around $300k. Can I achieve a reliable 7-10% yield on this, or would that be too high (or can I go higher even)?

About me:

I have no debt, excellent credit, am a very patient investor, not looking to get rich quick, and have a long horizon. I am 25 years old, and currently reside in NYC, though the market here seems a bit rich for my blood and a main reason I want to buy a place is to diversify my holdings. Buying here would require me to shift the majority of my assets from stocks/bonds all to real estate, and I'd like to have a balance.

I guess my main questions are:

1) Where should I look? (I am not opposed to buying outside of my geographic area if the numbers work, and I can be mobile if need be). What are the most promising markets?

2) What should I be looking for? MFR? SFR? Condo?
3) Can the numbers work with my current financial situation?
4) What is a realistic CAP rate/yield to expect (obviously this varies with market)
5) Just any other pointers or tips on getting started and what to look out for.

Thanks in advance