I bought this property with a private interest free loan from a friend. the person i bought it from need cash fast so i offered them a low cash offer and they accepted.I had enough money saved up to rehab the house with my savings.

I do however think as things clean up systematically, cashflow will improve and the benefits of low capX exposure in near term and appreciation will work out.

Flip side, for a third of that you are trained to find properties using creative finance taking over existing low interest loans that cash flow and you are buying in decent neighborhoods with every day lunch box Joes that have kids and go to work and pay rent on time. 

Locally my observation is that the need is more for low income young and working vs college student.

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

@James Tobin  yes FHA will be a very low downpayment option for you.

You lose because there are many other suckers out there falling for the same line and sharing the same low-quality leads that don't translate into sales.Do the math.

Preferably low or no money down as best seller would be one only interested in the monthly incomeI then sell said first property and take that cash to buy the investment I am really wanting and I get the terms I want.only thing I don’t know about yet is, how to dodge the tax on the sale of the initial property?

I too have feelings and thoughts about the programs.After I get past my feelings, I have found that I consistently get paid and vacancy is low. 

We do inspections on every deal and make realistic offers that are usually low.