It all depends on your risk tolerance.  

You need to have a feel for what you want, and how much drama you're willing to tolerate at that $40K price tag.

Although the tolerances can be higher for a VA loan, you still need to hit all the normal requirements.

It really depends on your tolerance for risk, knowledge and understanding of what you are doing, your team/mentors helping you, your finances and ability to get financing or raise capital, etc. etc. etc...Grant Cardone says don't touch anything with under 16 doors.

The amount of money it would take in the bank to support that worst case scenario might be a number close to what you would want in reserves, variable depending on your risk tolerance.

Then, it comes down to your risk tolerance and what returns you're looking for. 

Once you find an area that you like and that fits your risk tolerance take a flight out there and get boots on the ground to get a feel for how the quality of life is where you're investing.

In my opinion, if you've never done it before..you really need to have a high risk tolerance. 

It's all about your tolerance for different types of tenants in my opinion. 

That is my signal that my risk tolerance level has been exceeded.I hope that this has been helpful to the forum.