Hello BP Members,I am looking to buy my first rental property, but do not have enough capital to put 20% down plus cover closing costs.

From my opinion, the pros and cons of each areOpportunity Zone FundPro:I can pull out cost basisAfter 10 years capital gains tax is reduced 15%Capital gains of the investment are zero after 10 yearsOnce the property is developed, I should get a regular stream of dividends until cashing out in 10 yearsCon:I may have a 2-3 year wait until the Fund generates incomeFunds are pretty much locked in for 10 yearsReturns don’t seem to be as good as a rental property 1031 ExchangePro:I can exchange into properties with better cash flow and collect monthly cash flow immediately I have a tangible property rather than a fund which can be mismanaged I believe my monthly returns will be higher than an OZ Fund Con:Capital gains (depreciation recapture) continues to buildNot as passive as an OZ Fund I’m wondering if I missed anything?

If you want to be more active then you may be able to offer your capital to a more experienced investor for a part of the general partnership.

Rental Property CalculatorResultFor the 20 Years InvestedReturn (IRR):15.76% per yearTotal Profit when Sold:$508,194.80Cash on Cash Return:668.68%Capitalization Rate:6.53%Total Rental Income:$702,846.61Total Mortgage Payments:$333,762.50Total Expenses:$164,736.39Total Net Operating Income:$538,110.22 First Year Income and ExpenseMonthlyAnnualIncome:$2,800.00$33,600.00Mortgage Pay:$1,390.68$16,688.12Vacancy (5%):$140.00$1,680.00Property Tax:$375.00$4,500.00Total Insurance:$75.58$907.00Maintenance Cost:$100.00$1,200.00Other Cost:$41.67$500.00Cash Flow:$677.07$8,124.88Net Operating Income (NOI):$2,067.75$24,813.00

Hi everyone,I've been following the forums and podcast for a while, and now it's time for me to take it one step further :)I do not live in the states, but as my home country has a really tough real estate market which requires a lot of capital and has really low yields, I want to invest in the US.I currently have around ~250k and I want to start by purchasing a rental property to generate cash flow, then if it goes well slowly grow and add more units.

In my understanding, the barrier to entry in the NYC market is so high and the market itself is mostly an appreciation play, making young people like me who just started out without much experience and capital almost unable to participate.

I understand capital gains can be avoided by living in a home 2 of the last 5 years, but I don't know how that works when selling two homes.

I have low capital, but am interested in learning more about these if you can offer some insight. 

Additionally, we were also interested in seeing if she could do a 1031 exchange for her investment property in order to avoid a capital gains hit, which would be quite significant given the cost basis in the home.Does this sound like a good strategy, or is there a better way we can go about this?

Im a college kid with not a ton of capital and Im looking in Cleveland (if that matters to anyone).