I think Marco is spot on here, but I would also include one more ingredient.

.- Once you have your criteria and you know what you are looking for, analyze deals every day until you can immediately spot a deal when you see one (and when you do jump on it immediately, there is no time for waiting around on today's market)- Keep taking daily consistent action and always showing up and that will get you to where you eventually want to go. 

@Jay Hinrichs and @Tim Herman's points are spot on, @Tania Reuben. 

@Neal Collins is spot on. 

The sanders are very powerful and you can easily make grooves or make depressions if you stay in one spot too long. 

Do the math on the 401k for your situation, for most people having that tax savings now is a good thing and having diversity beyond RE is not unreasonable, but if your other loans are bringing in enough cash flow that you wouldn't be in a tough spot if one went vacant or the rental market turned, I don't see much point in paying those down.

.- The current median rent is $1267 which is my sweet spot.

I think @Curt Davis was spot on.  

Hi Eric @Eric Mitchell ,The above advise is spot on in the RE world. 

This way you get paid and you're out of the deal with your 10k.Lots of ways to slice and dice this one - but again, just make sure what you do is legal otherwise you could get stuck in a pretty nasty spot.