I work with a ton of new investors as a realtor the #1 way to get started is just find a 2-4 unit in decent shape and buy it low down with conventional financing 5-10% then you can live in it for a year and do another next year.

Rents are low and prices are high.

I'm not in a huge hurry as the cost of holding the property is low, so I'm taking my time to learn as much as I can and connect with the right people. 

Since moving into another fixer-upper isn’t ideal right now, consider leveraging your $40K for a low-money-down investment, like house hacking a small multifamily or using creative financing (seller financing, subject-to, or partnerships) to avoid tying up all your capital.

Maybe with a low (70% or less) LTV or an ARM and stellar credit...also depends on what type of loan you're looking for (nonQM or conventional Fannie/Freddie)

Financing and Exit Strategies MatterMany house hackers use FHA or low-down-payment conventional loans.

It could be 50% high, 50% low or right on the money but no matter which of those three it is makes no difference.

The low down payment house hack is the way to go.

Is it high appreciation area with a low rate mortgage?

If you join a brokerage with low or no monthly fees, your annual expenses could be as low as a few thousand dollars.