@Paul Giblin
If you want to minimize your risk you should consider a 3-4 unit because your monthly cash flow will be greater than a SFH.
If you buy right you can have 1 unit's rent almost cover PITI which eases my mind especially in these difficult times.
Couple a 3-4 unit with section 8 vouchers and you are really cooking with heat as HUD pays rent directly into your bank account on the 1st of every month which also reduces your risk.
For example I manage a 3 flat on West side and PITI with h20 and electric of $1400 a month that pulls in n $1328 and $1330 completely paid by HUD, and then another unit which pays $1325 totally paid for by SSI, so basically rent is guaranteed unless US government stops paying which inho is highly unlikely.
If you add up all 3 rents it is $3983-$1400 PITI minus expenses (not including repairs capex or vacancy) there is still $2583 for cash flow minus repairs, capex and vacancy which I UW as 5% each for repairs and capex and+10% for vacancy which leaves $2066 for cf each month.
I can sleep at night knowing that as long as I am competent enough to at least have one unit rented I can basically cover my monthly PITI.
This strategy might not work for everyone but it works for me.
Bottom line-you need to find out what niche you are comfortable with now and then take action.
Your strategy may change with experience and time, but it is important to get started.
Hope that helps.
