That being said, it is another part of your property that you can use to generate income and in this area you can hit the 1% rule before expenses.

We paid off our primary home last year and have been slowly getting the courage to jump into the investing market where we live in the Pacific Northwest.

This could allow you to buy time to get your financing in order and buy it later.Just be sure to run a cash flow analysis so you know whether it will cash flow based upon its current expenses.

Having a mentor was part of the $35k we paid.

Cash flow (in my portfolio as a whole) covers my expenses.

Hi Joshua, the amount of down payment also changes with the cost of the property, so starting with a less expensive property may be smart (for multiple reasons).

This does pose a challenge since that real estate is a lot more expensive than if you go more west and south.

These options will be more expensive.6. 

How do you know how much to deduct for these estimated expenses that you may do yourself or you end up tossing and replacing?  

With that low interest rate, you will have paid down a lot of equity in the deal and should be able to finance with a bank.