Lets say you buy a property for $200k and put $50k into it and then net $300k which is 20% profit.

I have seen these circumstances; people die, go out and buy a car, lose their job, etc… Just my own two cents, I’m not an attorney, just play one on TV

In addition to managing 65+ units in the greater Tampa area I also am a broker who almost exclusively represents investors buy the best available STR properties both on and off market. 

After selling one and using a 1031 exchange to buy a fourplex in Chicago, he reduced his interest burden by 20% while boosting his net incomes by $1,500 per month.

It depends on where you want to live, income, personality, and other factors.You could buy a large home and rent out the individual rooms to cover expenses, but this comes with problems.

I like the Unofficial Guide to Real Estate Investing.

If you buy upscale (desirable) properties in desirable areas as opposed to affordable (undesirable) crapboxes in undesirable areas you won’t need to entice tenants.

Don't buy those types of homes, they will take a long time and not sell for what you were thinking it would sell for! 

I am a buyer - my buy box is 200k ARV, all in $150k after repairs, rents for $2000 per month.

@Jeffery Jones you understand you'll be buying Class C & D properties, not in the best of areas?