Investing in real estate at 21 with $30k

[Michael A.]

I’m 21 years old and I have set aside $30k to use as a down payment for a rental property. I’m in California and am looking at Texas and the Midwest for an out of state property. I’m looking to create passive income and am thinking of a duplex. Cash flow is more important to me than appreciation. I’m currently in contact with a very good realtor in Wichita Falls outside of Dallas. It would be ideal if I could find a duplex for $120k. The realtor says finding a duplex for $120k will be difficult but not impossible. I’ve also thought about Indiana, Michigan, or Ohio. I see there are duplexes which go for $60k. 

I’m wondering also which is better for my situation (down payment or cash)? I actually have $60k saved but would prefer to use $30k for real estate. Does anybody have advice for a young person like me getting into real estate for passive income? I would like to create passive income so that I have financial freedom to travel the world with my family. 

[Patrick Drury]

@Michael A.
If your realtor is telling you that it's extremely difficult, I would assume that your expectation is too high for that market and they are trying to be kind. Even if you looked in Ohio as well you would be hard pressed to find a complete rehab for 60k. 150k-200k is a realistic price range for multi-family in Columbus. I would save up a bit more money and then look at picking up a rental out of state.