If they collectively would not be so foolish in overpaying, the lower prices are available right now. 

I'm less familiar with all the details to this, but if you structure this properly you can continue to defer some or all of the capital gains tax, and just collect interest payments from the buyer.

The house needs roughly $100k worth of work but the ARV is $750k and with the land if I were to buy the package is $1.4.My question is since it does need work (nothing too extensive) but since the guy has not taken care of it or even been there, it needs new doors, windows and there is a lot of marble throughout the house and some spots need repairs.  

This goes with your exit strategy, if you have a collection of Ds then all they will ever be are a financial tool.

Have non-refundable earnest money that keeps growing with contingencies in the original agreement and with each extension they ask for.Have a (right to continued marketing clause ) where you can kick out their offer if they do not perform.

My end goal, like many of you, is to collect enough passive income each month so that I can take care of my family, give back, etc. 

I have clients that own 1 to 5 vacation rentals here on Mau i and once you hit that threshold of 5 you may be put into a commercial status (5+ units), so qualifying can be a bit more difficult, looking at such things as:What has that person owned and what has been their management experience collecting rent and managing propertiesThe borrower's credit score, income and personal and business tax returns will be considered along with two years' operating statements and a current rent roll for the property.Also important are property metrics, such as: Net operating income: The annual income, minus expenses that a property generates from its operationsDebt service coverage: Measure of cash flow relative to debt payment obligationsLoan-to-value (LTV) ratio: A measure of the loan amount relative to the value of the propertyThe property has to service its debt at a comfortable marginOf course each lender can be a bit different, so it's good to shop around if needed.I hope that helps.BTW - what do you consider big money?  

Bill, Sounds like an extensive checklist is valuable. :-)George

If you bring no capital to a deal, you need to bring a record of accomplishment, extensive experience and knowledge.  

Again, this is just based on experience and having a very extensive background and knowledge of the entire Cleveland marketplace.