You're going to need a lot less capital to start there and it's actually a pretty solid city.  

For example in my city some older outside plumbing pipes in the 70's and earlier are clay and tree roots can grow into them.

Just carpet and vinyl will cost you $1500 and paint inside about the same, you know how it goes.All that would not be a disaster if you had solid cash flow, but without cash flow it's not good. 

@Or Yeger  quality first you will pay differently for in different markets..what your looking for is Yield the Yeilds will be dictate what you pay for the note.Many quality performing notes that are say 7 to 10% will be sold at Par.In my ever it to be humble opinion buying a note that was purchased as a NPN and is no performing is very risky.. the chance that you will be right back into NPN status is pretty great probably 50% chance or better.I like performing notes with good solid borrowers not notes were the borrower has already defaulted as they now know how its done.. plus ower occ notes have all sorts of rules and regs you have to follow .

I also have a 720 FICO credit score and will be living with my parents rent free for a year.With that said I have a solid credit score, decent income, enough for a 20% down payment, and little debt.

Overall, his company seems to be growing and a pretty solid pace.

Showing them that you know what you're talking about, you've identified the risks, and that you're prepared to go forward to implement a solid plan will give your stakeholders a little bit more of a warm and fuzzy on your behalf.Hope that helps.

I plan to build a solid diverse portfolio for me and my family.  

This Tuesday we're going to be bringing our GC to do walkthrough and get a solid understanding of what needs to be taken care of.  

There solid investors.