Hello everyone my name is Jacob Pena and i am 21 years old an looking to buy and rent out my first rental property, however I am completely new to the real estate world and would love a mentor or a guide to show me the ropes of how I can go about dealing and purchasing rental properties.

I have proof of funds ready and I’ve already asked the wholesaler to send over the purchase contract for review.This would be my first flip,  about 650 sq ft,  so the renovation is mostly cosmetic and manageable.

I don't have construction knowledge, but I'm getting there and the general contractor that does my work is a good friend so he gives me insights.

I own a 5 bed / 2 bath SFH that I’m currently house hacking but plan to move out of and keep as a rental.Bought: $284k (2 years ago)Conservative value: $380k (target ~$425k)Current rate: 7.35%Current payment (PITI): $2,273/moIt’s fully renovated (tiled baths, large master addition, refinished hardwoods, granite, stainless, etc.).Rental comps are tricky — not many 5BRs in the area.4BR homes rent for ~$2,800/moI estimate $3,000 low end, $3,200–3,400 high endI want to hold long-term due to location and appreciation potential.HELOC SituationI used a $60k HELOC on another property and pulled ~$35k for down payment + some reno.HELOC payment: $310/moOriginal goal was to cash-out refi this property to wipe out the HELOC and essentially recycle my capital.Lender OptionsOption 1: Rate & Term Refi5.99%, no points70% LTV on $380kNew PITI ≈ $1,983/moNo cash outOption 2: Cash-Out Refi6.625%, no points80% LTVPITI ≈ $2,331/mo~$30k cash out (enough to nearly wipe HELOC)If I cash out and pay off the HELOC, I eliminate the $310/mo payment — effectively putting me at ~$2,021 total outflow.

After we left, an investor purchased it, expanded and renovated the home, added a clubhouse, and turned it into what is now a high-performing STR worth ~$1-2m.Watching someone transform a property I once lived on into a successful investment has drawn me to media such as Rich Dad Poor Dad, The Richest Man in Babylon, the BiggerPockets podcast, and the REI industry as a whole.

I've spent the last few months studying the Erie market intensely and I'm planning to do my first house flip within the next year or so.Here's where I'm at:Stable W2 income ($85K), aggressively saving toward a $35K+ war chest for my first dealTargeting cosmetic-rehab properties in Little Italy, West Bayfront, and the Academy area - $40K-$60K purchase price, $130K-$155K ARV rangeStudying sold comps, driving neighborhoods on weekends, and learning renovation skills through Habitat for Humanity and hands-on practicePlanning to use hard money financing for the first dealWhat makes me a little different: I'm using my AI/software engineering background to build deal analysis tools - automated comp pulling, ARV estimation, distressed property alerts, and rehab cost calculators.

I have a walk out basement that has a bedroom with a king size bed, living room, dining area, full fridge, microwave coffee maker, stall, shower.

The appraiser we hired before the purchase appraised the property for 135k.

We target off-market lots, bulk purchases, or oversized parcels we can split.

I have always enjoyed the whole process and watched a few friends get very successful in the industry.