You're in good shape but you shouldn't expect the new investment to be generating positive cash flow. At the down payment level you are at you probably won't break even. You will have tax benefits from depreciation and any losses or expenditures you have for the new building. Those factors may put you on the positive side on April 15th. But not by much if at all.
There is a lot more to it and you don't want to buy something that might sit at the same value for the next ten years. You have to be ready to be a landlord. Property management companies sometimes charge up to 10% of monthly rents for their services. You can be your own property manager for something small like this but you will want to join the California Apartment Association so you can have access to lease forms, disclosures, and credit report services.
Accumulating rental property over 10-20 years will result in owning buildings that produce positive cash flow with built up equity. It just doesn't happen overnight.
Starting out as an investor, having capital to work with is important, BUT, find the right deals and the money will come to you!
Mastering these three areas â€“ Criteria, Terms, and Network, will give you the greatest chance for long term success and place you solidly on a path to becoming a millionaire real estate investor.
I teach a class called: 'The Millionaire Real Estate Investor Client Workshop'
It's based on the best selling book: Millionaire Real Estate Investor by Gary Keller. For this book, Keller and his team interviewed 120 Millionaire Real Estate Investors. From those interviews, they developed models for investing in real estate.
My goal is to teach people the wealth building opportunities in Residential Real Estate Investing.
If you would be interested in attending or speaking to me one on one, feel free to e-mail me: firstname.lastname@example.org