Congratulations on making very good decisions at this stage in your family life. The Central Valley is one of the few places in California that are still "affordable". I wouldn't be surprised if the area sees a significant correction, especially if interest rates continue to climb. But in the long term, if you buy right, at your stage in life, you'd be in a very enviable position.
1. You can pay enough down to keep the payments manageable, even if you have to absorb a few months of vacancy or a capital expense like a water heater or HVAC.
2. You can offer rent at a marketable rate, but know if the rental market cools, you could get by with less cashflow.
3. Build comfortable reserves in case bad stuff comes along.
4. Keep an eye on your equity and rates and when possible, refi to a lower rate, take cash out, or both.
5. Don't count on appreciation, but enjoy it when it comes; understanding that when wages catch up with inflation, more dollars will be competing for fewer available rentals.
6. Stay in touch with realtors and make clear that you are ready to discuss "less than perfect" properties. If you take a "before picture" property, you can save money on the payments, spend a dime at Home Depot for a dollar at appraisal, and rehab a house to "renter-friendly" specs, not "realtor wow", which is what the place will look like if it's ready for the MLS.
7. Considering what you posted, you and your family are probably in a high tax range and you'd be able to offset a significant tax burden with an investment property. Any good tax guy or gal would be able to advise specifics.
8. I wouldn't hesitate to reach out to lenders, property managers or realtors and discuss what you're thinking. Each one would love to earn your business and will jump at the chance to answer questions and ask you a few. If they act like they don't have the time, find someone who does. But don't forget to put a negative rating on their social media, your choice where. I would recommend David Greene's Lending Wing in the Bay Area. They were rock stars for us on a recent purchase. It wouldn't hurt to talk to their realtors, either; but I had more local representation, so I couldn't personally speak to that aspect of the business. There are several good property managers in Visalia. I'd check their reviews before you call one, but even if you're planning to manage the property yourself, if they know you're an investor, they will want to impress you. They might even have a few burned out landlords that you might want to talk to.
I hope some of this helps. It's refreshing to see a young family making such great decisions.
Very best of luck to you.
