Now the seller, since the deal didn't work out, is accusing me of practicing without a license.

Believe it or not, most people thinking about getting into this business stop at this point so you are ahead of the curve already.The best way to do this is to implement a direct mail campagin where you are sending offers to property owners that you have identified as good candidaties to sell.I've been doing this since the '90s and here's some tips:1) Find a market where the homes / land are relatively consistent (same age and or square footage).  

If you are consistent and persistent there then they might throw a pocket listing your way.

I also know that to qualify for an FHA loan you need a consistent record of a job over the last two years and have a monthly income.

@Matthew Spiers If you don't have 2 yrs of consistent earnings then its not going to be possible to get a conventional confirming loan.

The local rental market, in general allows them - unlike some parts of the city, where it isn't practical. 

Hi Juan- I'm not the expert on large complexes, I have 10 one bedroom apartments two of which are efficiency...while I'm a different neighborhood completely they earn very consistently but due to the more dynamic characteristics of single adults to pair up and paired adults to either have increased income trading up to larger units or creating children and moving up due to necessity- these are in a constant state of flux so require more attention.I prefer to rent to those on a fixed income with average expectations and a low interest in relocation. 

The "turf state" laws, which are practiced in seven other states, prohibit cooperation between Kentucky real estate brokers and out-of-state real estate brokers.

I'm practicing how to analyze deals the proper way.

They may go about 10% below the value, but at this point the mortgage companies are pretty sophisticated in their short sale practices.