The real trick is that tax investing is really local to your market. 

They require a lot of capitol as well as cooperation from the local city and/or county. 

Do not call it a down payment if you are using it to do an option.Since he is subject to the requirements of the lease, you are required to fulfill all local requirements of a landlord.

You should speak to a few local lenders and see if they have a product that might work for you.

Yes, it is helpful to generally understand the pm space and workings, but the more important skill, to learn first, would be how to find, vet, and hire a good local property manager.

Check your local and state regulations regarding this business model.  

I looked out of state but eventually came to the conclusion after studying 4 markets in depth that staying local where I’m in control and have excellent systems in place just made more sense.

Here is how it appears on the app:Mortgage Information        ^Equity percent:48%Mortgage amount:        Mortgage term:$93,000                            0 yearLender name:First Horizon Hm LnAssessed value:$178,800You can get this information from your local courthouse. 

There are definitely rougher areas in the city itself, however mostly they can be a couple of blocks more than an entire zip code so it is good to have local eyes for a potential purchase. 

I love that it is local to me and can check in as needed.