However, you need to learn about it specially the legal aspect behind it so you comply with the SEC but yes, it is possible you can buy properties without using your money.

This is counter-intuitive to my goal - slow and steady save to purchase our first investment property (with more to follow). 

A property or two will not be your ticket out.

I have a property in Fort Wayne that I own free and clear.  

It needs a lot of work, but my main thing I need help with is this old shed behind the property.

It will just be more of an explicit part of the price negotiation when buying a property.

Purchase price: $38,000 Bought this property with a private monery lender and sell it to a investor with 20K down.

I didn't phase that correctly and should have put an emphasis on "Traditional Sale".I am willing to sell but want to do it "creatively" - if you will - to generate funds and positive cash flow from the note I would hold against the property.

I have different strategies in mind but my main concern is if I should start an LLC now or after I buy a few properties?

Own property and needs full renovations2.