That should cover 2 rental income periods, returning $660 to your pocket.

If you convert it to a rental and sell later, you may owe capital gains tax + depreciation recapture, unless using a 1031 exchange to defer taxes by reinvesting in multifamily.Leveraging $100K in equity via HELOC or cash-out refinance can help fund the next deal, but ensure rental cash flow covers debt, expenses, and reserves.

As far as rate is concerned, you can usually go about two points over the current rate (less closing costs for a seller financed deal so there is no real expense there) You need to make sure the borrower can cover that.

Being new I would suggest started with existing builds but building small multifamily in a small town with a rental shortage could be a smart move (someone's gotta do it).

Set aside a big pile of cash or rely on a line of credit you won't be using.The oversimplified insurance concept is to pay a small premium to cover a large loss.

I think @Paul Sandhu captured the list of skills you need to find, and that you can probably find someone with "3M Talent" (or at least "2M Talent" to cover several areas.)

in cash flow would cut it for me. i'd want enough to cover the mtg, but also R&M and a little for vacancy. if i can't do that plus have a little actual "cash flow" left over.... i'm still here :) if that's any indication. 

I recently got pre-approved and am also on the hunt for my first investment property.

Drive to store / supply house #2 for materials.Shop for and purchase materials at sore / supply house #2.Drive to store / supply house #3 for materials.Shop for and purchase materials at sore / supply house #3.Drive to store / supply house #4 for materials.Shop for and purchase materials at sore / supply house #4.Drive to the property.Do the following repairs at the property.Bathroom 1 : Shower/Tub Caulking | Re-caulk tubBathroom 1 : Toilet bolt caps | Missing bolt capBathroom 1 : Window Covering | Missing miniblindsBedroom 1: closest to the front door : Door/Knob/Lock | Door know needs tightenedNeeds deadbolt installedBedroom 1: closest to the front door : Window Covering | Broken miniblinds needs repacedKitchen 1 : Wall/Ceiling | Pull nails and spackleLiving Room 1 : Wall/Ceiling | Nail and holes in panelingLiving Room 1 : Window Covering | Miniblinds need repairedEntry 1 : Security/Screen Door | Replace Exterior Door ScreenEntry 1 : Wall/Ceiling | Spackle and paintBathroom 1 : Door Stop | Replace door stopBathroom 1 : Light Fixture | Replace bulbBathroom 1 : Shower/Tub Caulking | Re-silicone tubBathroom 1 : Toilet bowl/lid/seat | Replace toilet seatBathroom 1 : Toilet Paper Holder | Replace toilet paper holderBathroom 1 : Tub/Shower | Relay loose shower tilesBedroom 1: closest to the front door : Closet/Door/Track/Shelving | Install Closet RodBedroom 1: closest to the front door : Light Fixture/Fan | Fan light does not work - replace fanBedroom 2: 2nd closest to the front door : Closet/Door/Track/Shelving | Replace closet rodBedroom 2: 2nd closest to the front door : Window Covering | Replace blindsBedroom 3: furthest from the front door : Switch/Outlet | Install smoke/CO detectorBedroom 3: furthest from the front door : Window Covering | Replace blindDining Room 1 : Window Covering | Replace BlindHallway/Stairs 1 : Light Fixture | Replace bulbHallway/Stairs 1 : Other | Replace blindKitchen 1 : Window Covering | Replace other blindLaundry Room 1 : Light Fixture/Fan | Replace bulbLiving Room 1 : Switch/Outlet | Replace OutletsLiving Room 1 : Window Covering | Replace BlindsBasement 1 : Light Fixture/Fan | Replace bulbSystems 1 : Thermostat | Reattach thermostat 1.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.