Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

Explore a DSCR Loan with Reduced Down PaymentSome lenders offer DSCR loans with minimal cash-to-close requirements if your property cash flows (even marginally).

It’s also great that you already have equity in your primary residence and cash available—those are valuable resources for getting started.If you’re considering a multifamily property, house hacking could be a great way to dip your toes into investing while minimizing risks.

House hacking is a fantastic way to start building wealth while minimizing risk.

It turns out he could like airbnbs that needed minimal DIY work.

Minimize expenses and pocket as much of that $60k as you can.

I have had no issues finding renters for our units and have have minimal turnover.

And, considering market shifts.. what’s your approach to minimizing risks over the next two years? 

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

This property was a foreclosure auction purchase, so minimal information was known.