Quote from @Michael Smythe: @Zachary YoungRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I’m potentially looking to purchase a mid-term or long-term rental property in a different state because I feel I may be able to find better deals elsewhere.

.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

However, if you’re open to purchasing an investment property before your primary residence, you could likely qualify for a DSCR loan.

You do have to purchase at least as much real estate as your net sale if you want to defer all tax.TICS are generally cash deals. 

Quote from @Steven Catudal: Hi all,I am looking to partner with a friend of mine to purchase some rental properties.

Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

I would like to purchase my first property sometime next year, utilizing this year to learn and network as much as I can.

Did you purchase this with a conventional loan? 

Or what are other ways I can access this equity to purchase?