@Hugh TrotmanYou might try this exercise - but I warn you, it's exhausting.Your goal is to be resourceful and stretch, not yourself, but your network.What can you get your network to do for you?

It's a serious, serious waste of time and money (I'm being redundant here, I know)I've assigned slightly over 75 lease option deals in 10 different states, and not once have I ever spent a dime of money marketing my deals (okay, this might be a bit of a stretch, because I've spent money on local proxy IP's and local phone numbers to create a new craigslist phone verified account, in order to keep my deals live on craigslist without getting ghosted by them, but that's a much deeper discussion).It is incredibly easy to find lease option buyers.

We're finally in the final stretch of project #2.  

Hi all i'm new to the community my name is Miguel and i'm looking forward to learn with all you guys about the beauty of real state. a little something about me, i'm 37 years old i'm a proud father of 2 boys and 1 girl, as well a beautiful wife, i love working out in the gym,running playing basketball and really anything that can improve my healthy life style. i work in the construction field doing office work, yeah yeah your typical 9-5 only mine is 6am to 5pm yes long hours and i'm tired of it. being doing it for 10 years and i believe there something better out in this world for me and that's one of the reasons i decide to give this community a try. i'm not that far behind on the real state me and my wife bought our first one and only home 9 years ago a multifamily home and we being leaving rent free. but now its getting old not knowing whats next and how to provide some freedom to spend more time with my family. i always like real state but never gave the proper effort to learn more about it and to stretch it to the max. so that's a little about me i'm sure i will meet a lot of awesome people here and i'm looking forward to it, anyone from new jersey i'm here if you like to go for a jog or grab a cup coffee.

C class would be a stretch.

@Steve Vaughan I don't think the owner is experiencing "hardship" per say, more just inconvenience and a stretched budget. 

I see a lot of owners trying to overvalue their properties to out of town owners and wouldn't be surprised if the "C+" asset class was quite the stretch.

My long term goal is to keep 1 in 5 properties(at a minimum) to create a passive income stream.Do you have some ideas on how to stretch the 200k in my situation or am I on the right track?

Now may not be the best time to stretch for a deal and accept lower margins just to stay busy.

With your method of paying off the properties it would be foolish to keep them once they are paid off as their cash value wisely invested elsewhere, in a truly passive form at retirement, will far exceed any income the properties themselves generate.Rental properties can not be considered as a passive investment by any stretch of the imagination.