I totally agree with Eric, for your first deal look to something with as low risk as you can.  

Sometimes the contractor will come in and tell you a low bid, but then once they open things up tell you you need to spend more to get it corrected because that was not in the bid.

This is bogus if buyer and seller are independent parties (if the parties are associated then I understand setting true value) as there is usually a reason for the discount purchase (risk items like unpermitted work, crazy low rents in rent controlled area, hoarder, heavy need of rehab, etc).  

I think taking advantage of low downpayments and using very high leverage is incredibly powerful it makes your return so much bigger.

Hello,A job relocation to San Francisco CA early this year is making me ponder if I should be selling my owner occupied duplex in Jersey City and buy something in Berkeley CA due to its proximity to San Francisco and has some fairly decent schools  for my kids and also UC Berkeley .The low  2.5% interest rate on the Jersey City property turned into a golden chain but I think I am done with managing tenants and property and would like to get more into an Equity play.

Cody,It is not easy with low down payment and  with current prices, property taxes and rates to live for "free" these days in most of the country.

Currently I am exploring investing in new construction rentals with the goal being to better calculate cash flow at the front end with maintenance/cap ex expenses being low for a prolonged period of time and predictable.

If the companies are large enough, and can tie down enough real estate at low prices to make them work, it can be profitable. 

Go online to Home Depot, Lowes, etc. just to keep tabs as to what's going on. 

I think inventory is going to stay low so the quicker you can turn it around, the better and I agree, you will be in good shape when you go to sell.