We want to invest in buy and hold properties, but we feel that pursuing this strategy will better benefit our long-term goal due to the potential cash flow and appreciation of a property (if we buy right).

I can get a line of credit to start somewhere between 27-30k my private banker told me.

Or to ignore the hassle of a FHA 203k or construction loan, you could conventionally finance the house, put your 20% down, then finance the renovation by other means--credit cards, personal loan, car loan if you have equity, private money from a relative?

At this moment I have bad credit, 50k in a 401k and an oil field job in west TX.

I suppose they would receive the tax benefits, which is something we want. 

Or worse yet what if the person is "willing to pay above market rent" because they have bad credit (doesn't intend to pay), no verifiable income (can't pay), or a track record for trashing rentals?

If you were qualified for a VA loan (no money down), have great credit, six figure income to show the bank, how would you get started on becoming a full time real estate investor in the NEAR term?

An additional benefit seems to be the ability to pay my kids out of the LLC so that they'd also have some earned income in order to start contributing to their own retirement accounts. 

Or is it more advantageous to start off with a portfolio lender that will work with you so you have the benefit of having an established relationship with the lender so when you get to 10+ properties, they're more willing to work with you if the numbers make sense?

Throughout the years, my family has bought and flipped several properties, so I have had the opportunity to be exposed to the benefits of investing in real estate, and now I am ready to venture out into the investing world myself.