Feel free to run the numbers but last I checked a 3 bed, 2 bath new build around $252,000 will cash flow right away once rented.

Purchase price: $280,000 Cash invested: $75,000 Multifamily building containing 4 separate units each with 2 beds and 2 baths.

This has been part of the problem last few years; the market has became saturated with first time investors buying your average 4 bed 2 bath home thinking they are going to kill it self managing, only to realize the returns are no where near what they anticipated and the work needed to self manage is more than they thought it would be.

There's a property tax foreclosure auction coming up in my area soon (Ingham County, MI) and one of the properties being auctioned I found out is a 3 bed, 2 bath modular home.

I've been "analyzing" some properties on Zillow for practice and to see if this would even be feasible for me to accomplish, I haven't found any properties under 4 beds that would cash flow, however there are properties that have more rooms within my pre-approval price range that look a lot better on paper.

My parents owned a 1200 sqft (cool) ranch with 3 beds/2baths when I was a tyke.

If it was a 2 bed unit, I would have suggested renting the second room and getting a roommate.I'd figure out what happened with the first place before looking to invest in a second rental.

I qualify for up to 850k at the absolute MAX and I am able to pick up a 4 bed 2 bath in the San Gabriel Valley.

It is a 4 bed, but has a big loft area upstairs.

We have all the beds made.