So I was just curious from people with experience what would be a good way to go about investing in real estate properties with the idea of renting them as opposed to flipping, etc in 2 years or so once I graduate college. 

There is no repayment scenario where a high revolving balance at a higher interest rate is beneficial as opposed to a lower interest rate mortgage.  

.), I’m not opposed to taking a live-in-flip approach and holding for at least two of the last five years for tax advantages.

As opposed to 1231 gain, LT capital gains are not passive income because, by definition, they are not trade or business assets. 

Not sure I want to use it up on properties without cash flow, as opposed to having cash flow that can push me above $500K. 

., as opposed to paying for the entire value, thus allowing you to have more capital in general for REI.

You may need to pay an option fee...as opposed to potentially tying up the property for 6 months, then just walking away. 

If you purchase via an IRA (as opposed to a 401k), you will need to open an IRA account at a specialty trust company that allows for investments in real estate.

We are still at the strategizing phase and trying to figure out how to tackle our local market (I’m not opposed to out-of-state, but my wife doesn’t like the idea of it… but that’s besides the point!).

That said, in my experience, I have made the most money through appreciation so I would only invest in an area with a diversified economy that has good growth prospects as opposed to a stagnant economy that might net me $200/month/door.