I know you want to go full time and jump in, but I'd recommend staying with your day job as long as you can - it makes your life a lot more comfortable to have a steady stream of income to pay the bills every month!

Small is easy to maintain as long as renovations were done correctly.

Plan is to hold as long as my IRR is higher than 10% What made you interested in investing in this type of deal?

Thanks, it all sounds good as long as I can avoid paying hefty taxes and generate cash flow.

As long as your intentions are clear and honest, you should be fine.

It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.

As long as you run your numbers and your estimates are conservative, you'll do okay in the long run.

Down the road, you can also use the 1031 exchange to defer taxes as you go from property to property, as long as they are like for like.I hope that helps get the ideas flowing....

Quote from @Ven Bud: After hearing to lot of bp episodes on negative cash flow, I have a question.I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence.

As long as you express the key details of tenant information, lease dates, along with any standard information to vacate, and clear language of "non-renewal".