I'm 25 years old and have mainly focused on index investing in the stock market over the past 6 years.

Something along the lines of 30% money in a cash flow real estate market, 30% in an appreciation market, 20% dividend stocks, 10% lending, 10% bonds/cash.

Now I realize you don't want to own but the meaning is that you don't lend on anything you don't want to own so while you numbers can probably be figured out that would be the over-riding principle. 

Make sure your offer is well below the the face value of the note (which you can find from your title report), then make sure you have a contingency in the offer requires the unpaid principle balance (UPB) and any senior liens be disclosed.

Different in theory but the same strict government principle applies. 

I need the income from the rental properties now and was considering buying the rental properties instead of doing the stock market?? 

(401k, insurance, vacation days, stable cash flow, possible stock matching, etc) If you have a family and kids, don't be in too much of a hurry to quit your job!

I immediately dug in and read through & quizzed on 2 units this day.June 10, 2015: Finished the first course "Principles of Real Estate".  

I have heard about the small lot developments that are being built..and since there is a lot of old housing stock in the area , and a big demand for newer housing in areas like Echo Park it does seem there is an opportunity there...but I think those types of projects are probably pretty complex versus just rehabbing a single family home since it would be new construction.Los Angeles is also very tenant friendly and the rent control laws are pretty strong.

LTV is used when getting funding and the lender, in an effort to keep his/her principle safe, typically wants 65%-70% max LTV allowing for a 30%+ safety cushion of equity.Next problem is your offer process.