You could also invest in a public REITS directly or even a private REIT. 

@Brian SinclairI don't know if it fits this low-priced deal is a good fit butI like joint ventures with sellers where 70% of ARV is just too low, so the seller always rejects itSo on alternative is to do a joint venture with the seller, give a note with no payments for four months, now you're on title, you fix it, then resell it, and pay off their note when it resellsExample, $200,000 house, 20,000 in repairs, 70% of ARV minus repairs is 120,000 net to sellerFor the joint venture, figure 10% for resale costs or $20,000, add in $20,000 repair bill, add in $2000 in private lender interest, and a joint venture fee of $10,000 for the real estate investorThis is a better result for the seller, netting the seller $148,000

If the rental properties are holding value and have a strong appraisal value you may be able to get a cash out refi with a private lender.  

Private money sources abound and are often easily negotiable to a win - win position for both borrower and lender. 

Then when you have the capital built up, find some private money and do a break even deal with them (hold it til they make back their capital investment, or flip it and split after recoup.) 

First thing you should be looking for is a private lender!!  

In my view, a wise short-term use of your money would be private/hard money loans, with 6 month terms, to residential flippers local to your area.

That's how we found our portfolio lender, our hard money lender, our private money lender, and a bank that would give us a line of credit.If you are looking to go conventional you are going to be looking at 25% down.

I am thinking about privately lending to a friend who has many years of successful REI experience.

Started by finding private investors so no money!