My name is Jakob Duboise, and I am a 21-year-old junior at the University of Missouri, majoring in Finance with an emphasis on Real Estate Investing and minoring in Entrepreneurship.

If there aren't any massive physical problems with the property, it appears you can grow income and equity.You might be able to buy this with little cash out of pocket if the seller owns it free and clear and was willing to finance nearly all of it.  

I found some articles and old forum posts on BP last night that discussed problems with financing and insurance for this arrangement. 

My client and I settled on an offer of $405k with all contingencies in place (inspection, appraisal, financing).

Thanks for the tip.

I am very excited and nervous to start my investing journey and wanted to come onto the forums to ask for any tips or guidance before I jump in. 

Here are some practical tips and insights based on my experience managing a real estate fund and working in this field.First, setting realistic expectations.

Real estate can really change the game, and finding the right properties with smart financing is key.

Start small, ensure your numbers (purchase + rehab + holding + selling costs) leave room for profit, and build a reliable team (contractor, agent, lender).For financing, work with lenders who specialize in fix-and-flips. 

Certainly not impossible, but the multifamily market (especially for larger properties) is pretty active and below-market purchases, while possible, don't happen as often as they might in the smaller property space.Pro tip:  If you still like the idea of purchase cap rate, use stabilized yield on cost instead.