Now mostly newer homes in a much more affordable price range than what you can get closer to the Bay Area.  

Keep doing what you're doing, @La ferria T., and don't look back! 

This helps explain why most of the examples where I've seen this done are done with some sort of affordable component that includes low income housing tax credits or they're done in luxury areas where the rents justify the conversion costs.

if he does the work,  he is either super cheap or can't afford to hire it out cause he will lose money. what u should look for is a run down place that u can bring back to life

@Linval T., @Brandon Turner & Account Closed give some great advice, follow it and you'll be well on your way!

@Jesse T.

Or do I put a big chunk into a good down payment t lower my own mortgage in two years?

Then there are times when the market is screaming higher (or for other reasons) you can afford to pay over 70%.

@Tom HarringtonThere are two main advantages an LLC has over anS-corporation.One advantage is that an LLC is governed by a private Operating Agreement that affords the company a tremendous amount of flexibility, whereas an S-corporation is governed by statutes and bylaws that limit the flexibility the company has with respect to management, profit distributions, meetings and more.

I'm not interested in being a slum lord, although Memphis seems to afford lots of opportunities for that.