1st step to rental income guidance

[Vivek Desai]

I am starting my path to passive income with rental income from properties.  I am still in the read/learn phase but hope to move to get my 1st deal done in late 2019/early 2020.  I am focused on the suburbs, primary Naperville, Lisle area.  Would a condo be a good get my feet wet or is single-family home the better longer-term method?  My goal is to buy a property with $100- $150/month passive income.  Any guidance/thoughts would be good.  TIA

[Joe Hermanson]

I've been looking in Naperville for over 6 months for both Condo's and SFH's, and the taxes, Condo Assessments and HOA's all drive the cost up where it's pretty difficult to get a cash flow of over $100/month without putting do a very large downpayment. Which really lowers you Cash-on-cash (COC) returns, which defeats the purpose unless you are looking for an appreciation play, which is a little risky at this part of the cycle. Look to Romeoville, Lockport, Aurora, and other small towns around Naperville and you might find something that fits your criteria.