I recently came across a hedge fund deal with over 1600 preforeclosed properties in Chicago on sale for .55 cents on the dollar.

I have been a lender catering to funds, investors and consumers for the last 4 years but my family has owned Multifamily my entire life and it helped put me through college during the recession.

The rate of return on mutual funds is highly dependent on which funds you are investing.

I was about 5 days from closing on my first place (an up/down duplex + cottage)...when the lenders (a typical residential / investment lender) said he would not fund the transaction...because the appraisal came back saying that it was a "raised mobile home" - and they don't fund mobile homes.It wasn't obvious that this was a mobile home by sight - apparently it was just the foundation of the mobile home that was used and then was re-finished (new siding, new roof, etc).  

Yes, I've acquired some initial funding, so now I'm in the process of learning how to evaluate a potential rental property and needed renovations.

Leveraging other nontraditional lenders and hedge funds are other sources of funding.

Opportunities will pencil out more easily in The Heights, Journal Square, or Bergen-Lafayette, and many areas can access Newport via the Hudson-Bergen Light Rail.Another factor to consider is desirability.

I am interested in learning about how to invest in buy and hold properties with minimum down payment and the ability to own the properties in 20 - 30 years free and clear by renting out and letting the cash flow fund my equity in the properties.

2) Is it possible to use these small amounts as a down payment on rental properties and get loans or other funding for the rest?

@Daniel Dietz, gotta have a credible/real plan to move in within 60 days of loan funding for it to be an owner occupant mortgage.