First time investor considering tenant occupied properties

[Damien Helm-brophy]

I am a 22 year old father from suburbs outside Philly. I’m pretty familiar with the biggest areas of the city, & I’ve been dying to buy a rental property there. I was considering a small property for Airbnb/short term rental conversion, but I’m worried about the initial cash flow & the possible inability to book stays. I’m now considering already occupied long term rental properties for a number of reasons, mainly the guaranteed instant income to cover my mortgage. Any suggestions for someone’s first rental property purchase? I do NOT have tons of cash to throw away either as I have a family and I just bought my first home last year. I know all investments are risky, but I’m trying to lean towards “safer” options for beginners. 

Thank you in advance! :)

[Nathan Gesner]

Quote from @Damien Helm-brophy:

I am a 22 year old father from suburbs outside Philly. I’m pretty familiar with the biggest areas of the city, & I’ve been dying to buy a rental property there. I was considering a small property for Airbnb/short term rental conversion, but I’m worried about the initial cash flow & the possible inability to book stays. I’m now considering already occupied long term rental properties for a number of reasons, mainly the guaranteed instant income to cover my mortgage. Any suggestions for someone’s first rental property purchase? I do NOT have tons of cash to throw away either as I have a family and I just bought my first home last year. I know all investments are risky, but I’m trying to lean towards “safer” options for beginners. 

If you can be patient, look for a multi-family (2 - 4 units) large enough that you could occupy one unit while renting the others out. That gives you some safety plus it's easier to manage. You can even earn your stripes on some basic handyman work. You may be able to find an owner that's willing to do owner financing so you can qualify for more without going through a bank.