Once you parcel them off, the value of the lots should be able to be leveraged to get some money into your construction loan should you decide to build on it. 

seller has all the leverage, and you've not built yourself enough exit strategies.start pounding pavement and talk to lenders to get out of this loan.

So seems you are in the area of financing which I'm not very familiar with: 401k + IRA leveraging.

I have officially initiated my real estate education a couple of weeks back and wish to build a solid foundation to setup and grow a new source of income.

I recommend you continuously educate yourself.

Hopefully what you’re investing in all our children will come back to you, as you educate yourself on BP and build your portfolio.

It would be hard to get financing on those properties so you lose the power of leverage.

It sounds as though you have set yourself up for success. 1) I don't think there is a surefire way to do this, but I would approach it from the perspective of how real estate investing can be leveraged to meet both of your goals.

I think its kind of making more sense now in my head what I want so I will try to be more organized in relating this info to you guys:in order to retire/do something else, here is what I think I need:1) live in a paid off house2) have 6 k in passive income...Even if I stay in my job, which I probably will for a while, I really dont want to leverage my house to buy investment properties.

How would you compare the risk rewards matrix of these versus lets investing in the stock market riskier assets (leveraged ETFs or High Yield, junk bonds etc.)?