After working through the first few steps of my business plan, I started to realize that I'm at stage 1.

That's a VERY smart first step. :)Liz

Keep in mind though when you set a precedent it is hard to step back from it later on.

One of the markets we invest into in BC's interior currently (Kelowna BC) has less the 1% vacancy rate, the city is going to be opening up the rules for adding a carriage house (or lane-way house) thus giving us a great opportunity to add another rental unit onto an existing property.The banks however will be happy to lend once the project is done but leaves us with a short term cash challenge to get the approx 200k to get the project up and complete. 

My positive mental attitude has helped me through some of the biggest challenges of my life, I fiercely protect it by carefully choosing what I expose myself to.

Is it set up like a traditional deal, just with the seller as the 'Bank', or are there other steps that need to be taken?

You are absolutely right, and this post is intended to be my first step toward achieving focus.

The best advice I've heard on the subject is to step back, when considering a tenant, and ask yourself if you would lend them $200,000+ in cash - if not then maybe you shouldn't lend them your property.

The challenge was simple, I just needed to figure out how to pay for them.Although I can’t explain it, after reading a book called “think and grow rich”, I applied these principals and well, I started finding money.At the same time, I met a future partner, other local resources and decided to really start pressing for more deals.Over the next several months, I went on what my wife describes as an all-out war path.

Also, what would my next logical step be?