I am extremely motivated to dip my toes in the water but I am having trouble deciding if I want to invest in multi-family properties to rent out for residual income or if I want to invest in REITS to gain some more capital.

I am trying to avoid a "wholesale" and partner to get residual income and or equity stake!....

I believe they sell something to "lime" furniture that you wipe on and wipe off, leaving a white residue that might have the same look.  

There could be major water damage, mold, or residue from their meth lab.My recommendation is that you observe a few foreclosures to see how it goes and maybe look for an investor that can teach you the ropes.

Everything I looked into checks out about the deal and on the low end with $100k i can make a little over $6k as a residual.

Are you looking to get a residual income now or prefer to scale up first?

One good source of residual income is sufficient if it is deversified.

With retirement sthill in mind I figure if I can save up 2k a month I can generate enough saving twice a year for down payment on a rental property, create passive income there and once I have built a ness egg for myself then start my TSP back up but at this point I will have residual coming in and my debt to income ratio will be low.

You could use the residual $600 to pay down your student loans quicker, or save up to buy another property, or split it between the two.

If it is not, then you will have residue of the material sitting on the bottom of the pipes.