My husband and I both have bad credit and not enough income to cover current debts due to a series of circumstances with both our jobs... layoffs, medical issues which caused job loss, etc.

How much are you setting aside for each property for vacancies, unforeseen expenses and other things?

@James KlafehnThat's literally the worst set of circumstances I've ever heard about for someone getting into RE.

Hi John,  like you, I am new to real estate investing and my circumstances are similar to yours, in fact,  I have located a couple of pre-foreclosure properties that are scheduled for auction mid March.  

I think what you suggest is a great option as well that I will add to my possibilities for structuring things depending on the circumstances... 

Attracting capital fuels my growth.Depreciation can offset some and perhaps all of the income, and on larger deals there are things we can do to create depreciation far in excess of the income so that the investors can even offset some of their other income in some circumstances.

Life has a way of changing circumstances and having options is always a good thing.

But selling a house is expensive under the best of circumstances (one of those cases where I'm sure a lot of smart people are working hard to introduce automation) and unbearable if you're underwater.  

I'm not doing buy-and-hold at the moment but I already know that in 10 years I'm going to be envious of those of you who are capitalizing on these circumstances.  

You may be managing it on your own now, but circumstances could change and you may change your mind in the future.