Overall, I think we have to discuss property classification when talking about cap rates or any measurement of price to income.

Since my research abilities are limited to CA for the purposes of vacant land... someone want to help with this?

Your easiest route is probably to get high limit dwelling fire policy with an umbrella.

I really don't know why there is such limited inventory in the lower-end.

Don't get overly concerned about public liability but you do need to be aware, keep properties in good and safe condition, know the rules and conduct your business with attention to details and you should be fine and carry insurance....And I believe Texas has an LLC that limits liability to a subject property safeguarding other business assets, which is unique, I suggest you simply form your business in Texas.

Have decided to limit to 4 units, HOA is amiable and residents are a close knit 'community' and amiable.

Otherwise it can get complicated as you really are putting buyers and sellers together, facilitating sales.You need to read your state statutes very carefully word for word as to what requires a real estate license and then don't do those things if you don't have a license.You can be an employee or memebr in a LLC that buys or sells, as a principal, in other words if BAC LLC buys a property and you are a memeber of BAC LLC, you can then be entitled to profits for the work you perform in that LLC.Another way is for you to take an option to buy and then sell your option, this is placing you in a position of havine an interest in the transaction, but those you sell to may have financing issues with this, it also depends on property restrictions or title limitations as beeing seen as sales during a restriction to conveyances, again check and see how these issues are viewed locally.Generally, you can not act as a third party between a buyer and seller and simply arrange or introduce deals and be paid a fee independly as that is a function of a real estate agent/broker.Lastly, it's easy to get a bad reputation amoung Realtors if you're known as a birddog, they will likely see you as unlicensened competiton and expect them to complain and report your activities.

However I would still want to keep my fulltime job and have real estate be something I do alongside my fulltime job.My question is with limited capital how could I best get started on this challenge?

I would try with your current insurer (unless it's Safeco).Allstate is quite popular, but are limited to insuring 4 properties - http://www.allstateagencies.com/DeanBarnard/WelcomeAmerican Family Insurance seems pretty flexible and will insure over 100 properties - http://insurance-agency.amfam.com/GA/robin-l-mitchell/Can your property manager recommend someone?

And I know my limitations and when to bring in the experts who will do a better job than I would.Thanks again.