Also, I have learned the hard way that you always need to collect a significant security deposit and it has to be the tenant's own money.

In terms of living on the income my real estate generates (I have a job but not a very secure or reliable income job), would I be better off staying with the properties paid off or looking for similar good deals and mortgaging them ?

I'm looking for information from hard money lenders and folks who have used hard money lenders before:What, exactly, is the process for securing a hard money loan for a fix-and-flip?  

From what I've been looking into its better to pay a bit more and have that security but Ill see what John offers, ill keep you posted.Cheers!

However, one mistake some investors make is performing only minor repairs after purchase.I prefer to buy a distressed property and address all the biggies, like electrical, plumbing, heating, roof is needed, etc. 

I would find a secured credit card with the lowest interest rate as possible.

I find the whole concept of securing a property with a contract without the full intention to complete the sale unethical- why not be up front with people? 

Since we are new to REI and recent grads at the same time, we do not have enough cash nor able to secure private money for the time being (we want to have a track record before seeking out partnerships).

For you to provide services and give those to the LLC is akin to making undocumented contributions to the IRA, which is why this is prohibited.The IRA must hire someone not disqualified to perform services such as repairs to a property.

A good performing note will realistically not have the due on sale clause called.