Would you take minimum cash flow in order to be able to cash out refi in the future?

[Daniel Ben-Hur]

I am 23, and I am eager to purchase my first rental property. I found a property that cash flows around $100-$150 in Bakersfield, depending on the interest rate, but I am wondering if it is a good idea to take this and run with it as a first rental, in order to be able to cash out refi in the future to be able to put a bigger down payment on a mult-family property. My projected ROI is 4.5%... so do I purchase it, or wait and save up that money for a bigger down payment on a multi-family property? (Yearly salary: $70,000)

Property description:

Listing price: $170,000

Rent: $1600

Buying my first property is pretty scary to be honest. I have 20% down payment ready, but again, still scary. From my analysis the cash flow is not much, but I also know beggars can't be choosers lol. 

[Sanjeev Advani]

@Daniel Ben-Hur - It really is going to depend on whether you have cash reserves for vacancy, repairs and cap ex.  The cash flow from that property is close to nothing and if there are any issues with the property and you dont have the financial backing to handle it then it is going to be hard to deal with.  That being said, if you are in new/er construction then it may not be as much of an issue.  Good luck on your investing!  Feel free to PM me if you have any other questions as well!