They would buy a fixer upper and fix it up while living in it, then rent it out and do the same with the next one.

Purchase price: $75,000 Cash invested: $1 Sale price: $93,000 This was a fixer-upper short sale listed at $125,000.

I bought it and found a landlord who was looking for a fixer-upper in that school district.

I found a landlord who wanted a fixer-upper multi-unit.

We live in the lower unit and rent the upper for $775, with a monthly mortgage payment of about $1300 (including escrow).

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With $40k I'd take out a hard money loan and buy a fixer upper, and use your $40k for your copayment and reserves.

Heck if I could have gotten the top end of the rental income (i.e on the upper end such +$200 on the average rent in that area) I could have made $195K work but I didn't feel confident enough that I could and if it went the other way (e.g. -$100-200 under average) I was definitely losing money.

My first real estate purchase was a fixer upper in Everett WA.Bought for 270k, I ended up as a unexpected landlord renting out to friends when I left for a work.

If this is a property management company as well, could be 90 days due to a placement fee.You'd be better off finding a cheaper, fixer-upper and spending 60-90 days fixing it up and then having equity and CF'ing more in the end.