This answer was posted in another thread: Account ClosedOriginally posted by @Charles Parrish: I get leads from housing inspectors - many of them are vacant houses, talked to neighbors on either side of the house and also across the street, if they are not home leave a note.Check the tax sale listDo a "bring to date" title report, see if there is a mortgage or lien Try to put yourself In the chain of title, buy a lien, foreclose.

I purchased a 4 bedroom, 1,692 square foot home 4 years ago on a 15 year fixed mortgage for 140,000 in Corpus Christi TX at 5.3 percent interest.  

You buy it and fix up the renter's side first, and let's say you manage to rent it for $1000/monthly, but $750 of that goes to expenses - mortgage, loans to fix it, insurance, etc - so you have $250/month to go along with your $20k/annual, so by year 3 you have enough to buy a second unit. 

In 2014 I got back in with a house that needed a rehab, which I got a conventional mortgage for and has since been rented out with good cash flow. 

I'm a new broker on the market looking for mortgage notes to purchase.

You might have better luck going with a mortgage broker who works with multiple lenders and is familiar with these programs.

That way you can buy a duplex, tri-plex, or a 4-plex and get the tenants to pay you your mortgage payment usually.I would concentrate on what is average for that neighberhood.  

My only problem is that the mortgage payment of my current house would only be somewhere around 200 - 300 less then what the average 4 bedroom house rents for. 

I am pre-approved and $600K would be the maximum for my mortgage. 

My plan would be a conventional 30Y mortgage with 20% down.