Good plan to start in Baltimore with boots on the ground—keep it simple and systemize: pick a tight buy box, then run a “Noise-to-Numbers” scan on volume (agent MLS pulls, 2–3 wholesalers, and one direct-to-seller list), comp only within close radius and similar beds/baths/condition, and budget rehab with two contractor walks plus a contingency; start with light cosmetic flips to test your GC and processes before tackling heavy value-add.

New kitchen, new full bathroom, added half bathroom, new eyebrow porch, new flooring, new paint.What if you did a light value add that projected a value increase enough to cover holding and selling costs, but the market depreciates a little?  

Keep your buy box tight – focus on light-to-medium rehabs in proven, landlord-friendly markets.Vet your core four early – agent, PM, lender, contractor; test them on small jobs before scaling.Underwrite with conservative numbers – realistic rents, padded expenses, and a contingency fund.Verify everything – contractor bids with photos and line-item scopes; PM approval on rent before closing.Stress-test your exit – ensure refi works at today’s rates and you’re not overlevered.Run your “noise-to-numbers” scan – analyze 20 leads, pick 2 that pencil, and test your team on one light rehab before tackling heavy lifts.

At my current pace, I’ll likely hit that goal in 2–3 years.I’m torn between two approaches:Keep saving over the next couple of years, get to 20%, avoid PMI, and be in a stronger financial position.Jump in sooner (maybe next year), put less down, and start gaining experience and appreciation sooner — even if it means PMI or a 30-year loan.For context:I’m in the Austin area, so prices are still pretty high but decreasing.I’m okay with some light DIY or value-add work (I’ve done a bit of construction/repair work before).

In this region, long-term rentals and light-to-medium rehab flips are still solid entry points, especially if you can partner with people who know the local markets.

I totally agree with you on that and am starting to see that truth come to light.

What is the middle ground where the borrower is happy with pricing and the broker/loan originator can keep their lights on?

Both paths can work, it just depends on what feels manageable for you two starting out.Are you leaning toward something turnkey or willing to take on light repairs for a better deal?

Any experiences you have had that could shed light on this would be very helpful.  

That's easier said than done, and you're only going to create that level of income if you execute and self manage well.If nothing lights you up, I'd invest in index funds and pull money out at a 5% withdrawal rate (gets you halfway to $40k), stay completely liquid, and have none of the hassle factor.