Purchase price: 3.

@Nick Henry this also comes down to how much time you have available and how much effort you are able to put into purchasing a home or building and doing renovations and then finding quality residents to live and take care of your asset.

I work with several real estate developers across the country and they all do it differently.My suggestion is to find a property type and an area/neighborhood/city/market that you are drawn to and plot your course from there.As for the amount of money you'll need, it's gonna be mostly driven off the purchase price of the property.

I've found an off-market property that would require $175k purchase, $35k down, $20k in repairs, with a conservative ARV of $235k. 

I partnered with him and purchased my first property here in Columbus, OH.

Step 1: Ensure you can get financing (is it a cash purchase or will you need a loan). 

Or buy something that needs some love and some hard money lenders will fund up to 90-100% of the purchase and rehab.

I would also do a property walkthrough asap and determine if the tenant will be occupying the property until termination is possible or leaving.

Purchase price: $110,000 Cash invested: $30,000 Hobby Farm On 10 acres2300 sq ft house with 8 out buildings - Large Barn, Animal/hog barn, Mid-size machine shed (2) 25' x 35' / 30' x 50', Large Machine shed 60' x 60', Grainery barn, Entertainment Barn, 3 car garage What made you interested in investing in this type of deal?

So pretty good equity position within a year plus cash flowing well based on a $325k purchase price.