A lot of your capital is tied up in other projects but you can get a hard money loan on it for 85k.

Prices are much lower than other cities so someone with less capital is able to invest in the Real Estate Market.

I just sold a rental home that I use to live on and I am going to be hit with capital gains...

You can buy less than you sell and you can take cash out but you don't get to take out non taxable original capital first.

I guess I will just let my tenets know that I will start increasing rent 3% per year and cap it at 10% below market.

And a cost of entry could be just a couple grand and there are low and no money down options but you still need a bit of capital and you can find info on that in the book in the store.

The advantage of a closing credit is that it minimizes your capital in the deal.

Business income is taxed higher, but his income is not business and won't be taxed higher than ordinary rates.The only things that are taxed lower then ordinary income are long-term capital gains and C-corporation income.

If you notice any new capital, make sure you request the Seller to transfer the warranties at closing. 

I have capital to go in on deals as a partner depending on the size needed, but I'm ready to have skin in the game.