Buying my first property - Don't know the best direction

[Rylan Kean]

I have read and listened to tons of info on rental real estate investing and I am now at the point of pulling the trigger. Visited a few properties over the past few weeks and finally toured some tonight and now I am stuck with the direction. My initial goal was multi unit properties, but knowing my cash barrier would only get me into properties $135k or under. That doesn't leave a lot of options to start with when looking multi unit, but in my area there are opportunities in some of the lower end neighborhoods.

So, that all being said here are my options and I am looking for feedback for a first time rental buyer looking to jump in and do some managing myself. 

All ran through BP calculator with conservation cap ex, management (plan to start with myself but factored in), maintenance, and vacancy. 

Option 1: Duplex unit needs rehab at top of my budget, but I have the cash to renovate. ARV is approx $40k more then purchase price. Rent is $650 max for this area. = cash flow approx $400 on 30 yr note and 9.77% ROI

Option 2: Duplex turn key, one side has a long term tenant with non renovated area and the other is all new with no tenant. Rent is set at $470. Unit is priced at value =cash flow approx $325 on 30 yr note and 19.88% ROI

Option 3: Small house rehab, purchase $35k w/ $10k rehab, that can rent for $650. Not a bad neighborhood, but resell is only going to be at max $60k. = cash flow approx $200 on 15 yr note and 9.27% ROI/ cash flow approx $300 on 30 yr note and 13.54% ROI

Option 4: Go all in and get two of the above or all three. 

I am ambitious, but I have done a lot of homework and ran every property through the BP calculator. 

[Ron Flatt]

Even though you are doing the management, budget for management also.  (you may not always want to or things happen and you may need someone to step in)

Depending on your drive, I would probably go with Option 4.  

on the conservative side, go with Option 1 or 2.  The reason, you have less chance of both being vacant at the same time.  More doors, a vacancy does not hurt as bad.  When I only had one house and it went vacant, I felt it more and rushed getting tenants in (not always best tenant).  Without the pressure you can wait for the better tenant, who will have staying power.