If you do not qualify now the broker should be able to tell you what you need to improve in order to become qualified.

Passive income can help you pursue your real passion, but who knows, you may become passionate about aspects of real estate:  providing jobs, improving communities, the big checks, the tax savings, or the travel?

Investing 20-25 percent of your own money provides some equity which helps cushion the leverage (in addition to any improvements you make to force appreciation) and it eliminates the need to pay private mortgage insurance.

@Ikean Lucasi would be glad to help. when i get more info, i will follow up with you. i have not heard from @Brian Dayal yet. i want to sit with a fee based CPA who could take a look at my financials and see if i could use some type to make my plans a bit more air tight. i am on a strict budget now, but their may be ways i could save and earn more maybe in a IRA, ROTH IRA or mutual fund account, stocks for bonds.anyone with more info, any feed back would be greatly appreciated. thanks BP. 

When rehabbing the house I have considered tearing out the baseboard and wall heaters and adding central air/heat, which I'm thinking will increase the value.

Be talkative and use it as an excuse to leverage your current environment.At the end of the day, money spent on self-improvement usually is never a bad investment. 

I plan on wrapping it in vinyl siding next year, which should greatly improve the outside view.

Our goal is to purchase an REO to rehab, live in it for a couple years making small additional improvements, and sell it for a profit.

I'd like to get an FHA loan to do a cash-out refi and use the money for home improvements, some minor debt pay down (mostly to raise credit scores) a cushion for starting my real estate career, and ultimately buy a new house and convert the current one to a rental.

I grew up in a small dutch town in IL, eventually joined the Air Force, and found myself in Omaha, NE.