Google both titles to learn were to purchase.For Placer county I still have to physically visit the courthouse.

(a $300 a month or more spread is best).Should they exercise their option to buy in two years, the amount of the deposit would come off the purchase price in the form of a credit. 

@Jay Hinrichs are you saying I could be a little more aggressive at the auction because I know my friend will not exercise redemption rights on me if I win bidding?  

Tenants can draw the process out with numerous delays and it is not uncommon for a tenant to live rent free for 3-6 months before the sheriff can do a physical eviction.

I'm just entering the work force as a recent physical therapy graduate so I have no money saved up right now.

One of the benefits of investing in your area other than the fact that you will be physically close is that, for obvious reasons, Silicon Valley is an ideal market to rent properties given the phenomenal job and income growth over the past 5-7 years.

I hate cash too, but being remote, physical delivery is impossible (lucky me).Second, same Regs disallow coercing payments to any single method.  

There are REIAs in your area that you can physically go to to network.

lots of good answer above: but I would also add:support at home from your spouse- depending on their risk tolerance vs. yours you may need to over-communicate early on regarding the money down, risks, returns, and physical property details, and then keep them involved and knowledgable on a regular basis.

Should they exercise their option in two years, the amount of deposit would come off the purchase price.In short, you get paid three ways. 1) You've collected a substantial down 20,000 (or more)2) You've made $550 per month cash flow x 24 months = $13,200 (the other 700 paid down your debt $16,800 so your balance to the seller is now $102,200)3) Your buyer gets financed at 139 (159 less the 20,000 credit) 139,000 - your 102,200 balance = $36,800 profit on the back end.So in two years you've been paid:$20,000 front end + $13,200 in cash flow and $36,800 on the back end for a total of???