If it's commercial, then have them send you their P&L's, taxes, personal financial statements etc.

Here's how I attained both in a relatively short time:-I worked for a Big 4 Accounting Firm auditing the financial statements of the biggest names in real estate..

What strategies do you use to protect against financial downturns and is there anything to look for or negotiate when taking out a loan that can protect you?

This is a valid method of investment for those who lack the initial capital themselves and who have issues getting a loan from a conventional financial lender. 

If the house is empty, it's probably a financial drain on the owner.

Debt service?

My ultimate goal is to acquire enough rental properties that will produce enough positive cash flow so my family will be financially free.I'm looking forward to learning and networking with everyone here. 

From speaking with another (actual) investor, I learned that this group operated heavily in the Stockton and Sacramento area.Bottom line: if you come across someone who tells you that you have to pay to learn from them, I would suggest to continue looking - it is possible that you may learn something from the "education," but, in higher likelihood, you'd only end up deeper in debt, or worse, in a bad RE deal that they could not find anyone else to sell to.There are plenty of honest people still around, many are successful and some of those have blogs and podcasts that you can learn from for free (although, they still seem to have something to sell you, but it is a fair trade off.)

Based on the numbers you provided and running the deal through my software analyzer, the NOI comes to $14,400 (50/50 rule) and the debt service comes to $15,322.16, so you have a LOSS of $922.26 each year.

Here's the low down:250 Units, Evansville, IN | Class C+/B- AssetAcquisition and Assumption of Existing Debt (35yr Amort at 2.93%) + Mezzanine Note + Equity of about ~23% Equity Raise: ~3.1 Million (our own cash + limited investors as well).Plan: achieve cash on cash returns in the mid teens (going in 8.55%), IRR of 15%+ and 2.25x over a 7 year hold.