You are out in Cali so it is tough to get a good cash flow deal but if you have a comfort level check out states Like Indiana, Ohio, Florida, Las Vegas, Tenn, Georgi and a few others.Unlike Cali you can still find a decent 2-4 unit in states Like IN, OH and FL for under $250K with rents at or above $1250 a door.

I recently bid a 5 unit and the pricing scale that was used with 3 different national estimators we use as consultants was so low they warned us but we are comfortable with our market and costs. 

Quote from @Brendan Jones: For the homes, and or properties that you will use as a primary or a rental property one big thing I look for is infrastructure in the area, extrinsic value (I.e. hospitals in the area, schools, and job market), and the last thing is creature comforts for people (I.e. is a store to get groceries 1 hour away or 2 minutes away).

If the only MFH options you're finding are in areas you're not comfortable with, it might be worth focusing on a duplex in a better neighborhood.Saving up for a larger property later is a valid approach too, but keep in mind that real estate tends to appreciate over time, and waiting might make it harder to enter the market later.

In MN it feels like NJ and NY has long bought up every section of decent future developable land.

Personally I wouldn't feel comfortable trying to wholesale a relatives $1M home knowing that I am breaking the law if I cross over into doing anything that can be considered representing them in the transaction, and knowing it will only be marketed to people who buy properties wholesale (typically investors who don't want to pay retail prices), instead of the majority of retail buyers active in the market who are typcially willing to pay more. 

Glad I have mine, but I'm not going to debate anyone who feels they're better off w/o a license.

And those factors of risk exposure and weighted returns, drastically change how much capital I'd be comfortable to outlay, for a $40k annual return. 

Must have tools: you need some type of evaluation metric and/or tool that you are comfortable with and are willing to walk about from a deal if it doesn't meet your requirements.also, a deal is a term for a transaction, not to be confused with a "good deal".

Understanding your top priorities can help in determining whether Stessa, Baselane, or another tool might best fit your needs.If you're comfortable with apartments.co for rent collection but want higher yields on your cash (this is me reading between the lines) you could have the transfers go into a high yield business account like BlueVine 1.5% interest or something like CapitalOne 3.9%.