As many people in the SF Bay area, I am a software engineer. Bought a house last year so each month I have about 4k that needs to go into mortgage and tax. I would like to do some real estate investment but with not much salary left each month what I can leverage is only about 100k cash in hand. So here is my question:
1. How much mortgage can I get with 100k cash but very limited monthly flow? Does it change things if I can present a sound plan for renting the property out?
2. If I am investing in cash, would it be a good idea to start buying a SFR in the Midwest?
3. If I am able to get mortgage, should I try to find opportunities in Sacramento-ish area that I could get access myself or it is okay for me to by remote property and leave it to property management? Running the number both makes sense but maybe there are some pros/cons I have not thought of.
Here are several different ways that I can think of:
1. Buy 1 SFR in the Midwest with cash, leave it to property management company and using that property to get another loan. This can continue as long as I can always get property there under 100k.
2. Try to get another mortgage and make it 400k in total. Then invest in a condo in East Bay. The money probably won't look too good and with my primary resident in San Jose the risk is high.
3. Try to get another mortgage and make it 400k in total. Then invest in a duplex somewhere. Leave it to property management for a while until I am tired of the Bay area and move there.
Could someone please help me with some answers and suggestions?
