Where to start on funding cheap properties?

[Kevin Reid]

I am new to the game, as in brand new and I do not have a clue where to really start.

I currently own a house that we plan on living in for at least another 15 years or so, but we are very much underwater still, by maybe 40k or so. So borrowing on the equity of my first home is obviously not an option.

I want to buy a cheap house for a long term rental, I plan on holding on to it for a decade or so before considering selling it. When I say cheap, I mean upwards or $50k, but I have many options in the $30-40k area. Naturally these homes will need a little work, mostly cosmetic, but anywhere from $5k to $15k.

So assuming one does not have much cash on hand, but has excellent credit, what are the options out there? How do people with no money get loans to buy and fix up a property? Thank you very much.