30k on hand, how do I start?

[Mohamad Suleiman]

So I have been saving for some time and I feel like I am finally ready to take the plunge and invest in real estate.

My goal is to purchase a property (probably a SFH) and rent it out long term. I want to grow my portfolio by investing in additional SFH's over the coming years (for example, purchase a ~100k home every year or two until I have 4-5 home under my belt, then sell them and purchase a complex of some sort to make it easy to manage and cheaper to maintain.)

From what it looks like, I am comfortable purchasing a home worth up to 100k (looking to put 20% down + cover closing costs, fess, etc.)

Unfortunately I live in the Bay Area, so I am forced to look in cities that I cannot personally maintain/manage. I am looking at the following cities:

Stockton, CA

Fresno, CA

Bakersfield, CA

Dallas, TX area (Dallas, Irving, Garland, etc.)

Detroit, MI

Grand Rapids, MI

I am looking on Redfin but I can't get the math to work out on any of the rentals, my ROI will be no more than 1-2%. Should I start looking at homes on Auction.com or REO's? If so, what is the best approach that a newbie should take to get going?

Or am I looking into this too much? I am leaning towards taking the safer route and purchase a home that is not foreclosed, short sale, auction, etc.

Any advice or tips to help guide me in the right direction would be very much appreciated!

P.S. looking to make the purchase within in the next 30-60 days!