I currently live in a home that is paid for 100% by a trust fund which is not in my name nor my wife's. 

First you say you have acess to funding but you have low income, Then you talk about using a hard money lender.

My question is: with my current income, I could rapidly pay down a property using my own personal funds in a 2-3 year time frame.

I also don't know if the water / power are metered separately - I plan to drive by today and look for meters.Now that I know I have time to secure funding, it boils down to getting the pre-approvals done and deciding on what I'd bid.So to update my back-of-the-napkin conservative numbers:Rents:  $3900 / mo or $46,800 / yr assuming fully rented which isn't hard here.Expenses: Lawn care ($400 /mo during summer, or $2800 / yr est. 

an option to lower costs would be to consider  slightly higher rate …...title ins is likley needed to provide assurance and insurance no liens have been placed on title since the last loan was made ...if they are asking for funds upfront , before the loan closes - do not use them  ...if the costs are to be paid at closing - this is standard ….she should be able to  roll  any costs into the new loan if there is  ample equity

Funding 3.

We also have a pretty steady economy and a desirable downtown  area!

However, my original desire to achieve financial freedom has just became stronger.

Since 3 bed/2baths are the most desirable among buyers, I have hired a contractor to turn the bonus space on the bottom level of my home to a 3rd bedroom (an option offered by the builder, but I didn't need it at the time).

I've heard snippets of people mentioning using their IRA's to help fund deals, but I don't fully understand it.