You live in one room, rent out the others, and pay your expenses with the income.

If they are pre forecloure/foreclosure, probate, or lists that require fast access to the lead to gain an advantage how new is the list and are the leads already on the prominant platforms like Propstream and Propwire?

Remember to split the expenses and depreciation based on how much you rent it out versus using it personally. 

Here are a few strategies to consider for funding a down payment:Partnering: Like Gregory mentioned, finding a partner who can contribute to the down payment in exchange for equity or a profit share is a solid option.HELOC or Cash-Out Refi: If you have equity in your home or another property, a home equity line of credit (HELOC) or cash-out refinance can provide the funds you need.Private Money: Reach out to friends, family, or private investors who may be interested in lending you the down payment with a promissory note.Seller Second: In some cases, the seller might agree to finance a portion of the down payment as a second mortgage.Live Frugally and Save: It takes time, but reducing expenses and setting aside funds from your income is a tried-and-true method.The right approach depends on your situation and deal structure, but a mix of creativity and resourcefulness can go a long way.

These will be more expensive projects, but the house would be greatly updated and more appealing.2.

Quote from @Marlena Hawkins: Does anyone know what insurance (liability, E&O etc.) is required for Property Management companies in DC and Maryland? 

If you don’t know the legal notice requirements for your market make sure you figure all that out before you do anything. 

Taxes, insurance or repairs, and then lose the property to foreclosure having pocketed what6 months or more rent payments with no expenses.  

The states that I know require you to try to mitigate your damages if a tenant breaks a lease early.

From what I have seen, the typical remedy is termination of the contract, refund of the EM deposit and all expenses incurred by the buyer during the failed transaction.