One company owns everything and does nothing (this is your SLLC a/k/a “asset holding company”) and a completely separate company handles all of your operations (this is a traditional LLC a/k/a “operating company”) For the operating company which serves as your face to the world and through which you do all your business, you establish a Traditional LLC to carry out the operations of your investments.

@Carlos Pena It is unlikely that you will find a pre-foreclosure that would be a deal for what the people owe, otherwise they could just sell it the traditional way and get out from under foreclosure. 

A non-bank lender with a DSCR program is likely to be more flexible than a traditional lender.Best,Michael 

Don't expect to find a traditional cash flow rental on the MLS.

Cash flow as a traditional long-term rental is tough here, but there so many other ways to get into real estate investing in Colorado Springs.

Once that is complete, you can set up a Builders Risk policy and get traditional financing in place.

So that is holding up a traditional loan for me.

Nevertheless, I live in the Dallas/Fort Worth, TX area, which has traditionally been a lower priced area, and have mostly bought locally, but even in places like this, prices have risen dramatically, and it's getting harder to get good cash flows.  

As a wholesaler there are sellers in every neighborhood that think their property is worth a million dollars, I would recommend handwriting letters or going door-to-door and talking to people and building rapport in relationships which may take time but is also probably the best way to find a good deal because you'll know about properties that people are interested in selling that are not going to be on your traditional list from the source or text delinquent or any other lists.

If I were you I would find a good multi-unit property that you can live in and get a traditional mortgage on and start renting out immediately to get your mortgage paid by other people and cash flow.