This will require capital to start purchasing vacant land, but it would be significantly smaller than a down payment on a house.  

For example, if I buy a group of payments; do I have to wait for those payment numbers to arrive before I get paid back for them?

It's rented now at $1550 as well, on a $540 mortgage payment (5.85% 5/20 ARM.)I estimate a net return of $5K yearly on each property after expenses (thanks, BP calculator!)

Your profits will also depend on your monthly mortgage payments.

Rentometer is still free and it's generally reliable (at least here in metro Atlanta).

Here you can turn one year's tax return (or one year's contribution to a self-directed IRA) into a down payment on a new rental property. 

The additional amount could be due to the lack of payments, legal fees, a possible refinance, and/or home equity loan.

Hi all,I'm still scouting for my first deal, and I came across a commercial multifamily (7 units + 2 stores) that is out of state (NY, I'm in CA) that looks promising.The basic numbers are:Asking price:  300kCurrently leased, bringing in 74k per yearTaxes:  8,600, but assuming 10k.I'm assuming this needs to be a commercial loan, which brings me to my first road-block - my down payment ability is limited to about 30k (I have an IRA with 60k in it that I can borrow up to 50% of).What sort of things should I be on the lookout for with this type of property (assuming I'm able to surmount the down-payment problem)?  

  $120k X 80% is $96k...leaving a $24k down payment. 

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