Get a no-cost pre-analysis for a cost segregation study now.

I started looking into Denver 🤔 @Gilberto Ramirez III- thanks for the feedback ....if you need to use a loan to purchase and  if you havent already  been pre  approved  recently - I recommend getting the pre approval in place BEFORE  spending a lot of time actually looking for  properties 

Like the others have said, leverage is a huge factor with real estate and there are tax benefits.On a smaller scale, anecdotally, I know 3 people who have quit their W2 jobs early from rental property that bought pre-2008 in California and another investor in the Midwest, who bought before 2017, all right around 40.

Perhaps it lacks the "guaranteed" pitch that might intrigue you, but those pre-determined dividends are great until they stop, and usually that's what happens when new capital is not brought into the deal.  

He first needs to get a pre approval letter though to make sure he can qualify 

The first step is to get pre-approved for a loan to determine your max budget. 

I would not want to move money from an after tax account to a pre tax account even if allowed.

Speak with lenders to be pre-approved for financing, and look into choices such as portfolio, FHA, and conventional loans.Use resources like the BiggerPockets Rental Property Calculator to thoroughly analyze offers in order to assess possible cash flow, return on investment, and other financial parameters.

For illustration purposes if there's a block of identical homes of the same vintage and one was just renovated and you intend on renovating the same vintage home to the same specs (and was of same pre-renovation condition), you can make reasonable assumptions.

remember your first home is not your forever home, it's your first rental so it doesn't need to be everything you want.look for homes where the bones are good, but cosmetically needs love. don't by pre 1960 if you can help it. you'll end up just having to replace all the guts like plumbing and electrical at some point. it's inevitable. look in areas where the path of growth is headed, but might not be currently. think 5 years out. look for resources like your local chamber of commerce to see what businesses are coming in and where. your city planning office should also be on your call list as they can help show where most permits are being pulled for development. follow the money. go to local investing meetups. crowdsource local knowledge and form meaningful relationships. those who've gone before you typically will help out and help you avoid the mistakes they've already made. onward.