New investor from Baltimore seeking for advice

[Ethan Kramer]

What's up everyone, I am a new investor from Baltimore, MD and I am hoping to start investing and holding properties as soon as possible. Disclaimer: English isn't my first language, so I apologize for the shaky English - I try my best!

I sold a business a couple of months ago and I have about $350k to invest in rental properties in an attempt to establish a solid stream of passive income for the rest of my life - turned 26 last month. I just received a real estate license to save money on closing fees and I have a non-existential construction background, so I would need to work with a general contractor if I were to purchase distressed properties and rehabilitate them to rent-ready condition.

I am looking at a townhouse in Baltimore at $25k that already has a tenant paying $700/month and would love to renew the lease agreement for another year. It is in a rent-ready condition but it could use a little TLC and the ARV could potentially increase to $30k. The mortgage after refinancing would be no more than $200/month and I am not expecting to cash out the whole original investment after refinancing but with this rent-to-mortgage ratio, I should get my investment back within several years, which I am fine with as I would still have enough money to invest in more properties immediately.

Would this be a good way to get my feet wet without potentially sinking myself under the water? I would love to work with a contractor to rehabilitate properties before finding tenants for bigger profits and to leverage the investment, but trying to get an idea what it is like having a tenant and being a landlord first before I go any further.

TL;DR: A newbie investor looking to acquire rental properties, but wondering if it is a good idea to purchase a property that is already priced close to ARV and does not need much work as a first rental property to get a taste of what it is like having a tenant and being a landlord before going any further.

[Jeffrey H.]

@Ethan Kramer

What do you know about being a landlord in baltimore? What do you know about construction to know what something does or does not need?