While it is cheap money (interest rate is typically set at prime + 1%) the loan must be paid back using amortized payment over a period of 5 years.

If not, generate cash and build credit profiles for free i.e. 800 FICOs and 80 PAYDEX LLCsbecause when you need to raise money, the more options the better.If you need any advice on building credit effectively on the cheap,feel free to reach out :)This is my opinion and I'm not licensed,John Acheson, MBA

The 1% rule was invented during the early 2010's when you could scoop properties up cheap and now it's not a strategy or rule that applies in many places. 

There was a time on here where some did that with super cheap properties but the tenant base could be a real challenge.

So maybe you could try to find something like that and do Airbnb in the meantime.Subdividing is not super cheap, and vacant lots typically sit on the market longer than homes do, but it could be a good opportunity if you have funds available to purchase the lot and to pay for subdividing services.

Ps: Don't go for the cheap VA's, there's a HUGE difference between the $3-5/hours and the 7-9. 

If you want to jump in anyway aim for either the very basic entry point - maybe a 2br condo that's cheap - or you need to go up to the 6-10 br homes in resort areas.

Some tenants prefer buying their own rather than using cheap appliances that are not very good.

This is not going to be cheap.

With $200,000, you might try house hacking or invest in 2-4 unit properties in cheap locations.