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Whether or not its a "wise" purchase is subjective to your personal investment goals.  

Direct mail is frequently recommended here on BP (for good reason - it works, eventually), but I also like to tell people to try calling “for rent” signs in their area to ask the owner if s/he would like to sell.

@Zachary BellinghausenA couple thoughts.......Your notion to combine equity and buy something larger makes total sense to me.You can sell subject to the lease.

We revisit the subject of LLCs with our accountant every year to see if we need to make the switch. 

Then I would do a purchase & sale agreement with the seller, get an authorization to discuss the loan with the lender, along with a notarized Quit Claim Deed, (I learned to use a Warranty Deed later), get the reinstatement amount, send in the reinstatement and bring the loan current, give the seller their equity so they could move, record the Deed and take over the financing Subject To.

I think there will be a lot of bargains next year, especially if you are good at creative dealmaking and can negotiate seller financing or "subject to" deals.Recently, I made an offer on a rental with a solid tenant and the numbers were good based on the advertised rent.

This is a great question and a question many new investors have.The best way to ensure your success in this business to have solid comps for your subject property and to know your numbers down to a science.

Partnering, taking a HELOC out on your primary residence, and finding a property being sold Subject-To are also some good ways to get started if you have consistent income, but low savings.

That way, you can build a healthy passive, or active income subject to capital gains tax.DepreciationDepreciation recapture happens when you sell a property.