New to renting, wondering if this is the right strategy

[Asher Anderson]

I am thinking about purchasing some rental properties and I am trying to educate myself on the proper way to go about doin it. I've read about the 50% and the 2% rule and I think I have a clear understanding of it. Also, from reading other posts, I've read that buying rentals in cash instead of via loans is the way to go.

I currently am bird dogging for a couple investors and finding sfr's for sale for less than 100k, and that have typically 80k equity. I originally considered buying one of these properties as a rental, they rent fro around 1100-1200/mo, but after reading about the operating expenses it doesnt seem like I would make any money, maybe just cut even ($650 for mortgage/insurance/taxes, + $600 for expenses is a -50 monthly cash flow).

My current thoughts are: bird dog a few more deals until I can contribute a reasonable amount of money to a flip, then continue to flip homes until I can buy one of these properties cash as a rental. then my net income would be approx $600/mo. Rinse and repeat, trying to aquire 1 - 2 properties a year.

I am wondering what everyone's thoughts are on this strategy. Should I purchase the home now and rent it out, capitalizing on the equity, or should I wait until I can purchase a home cash?