It just won't be cheap conventional financing.  

The only downside to the DST is the cost to set it up, but for a CA resident even the seemingly expensive is cheap to the comparison.

Last option is to buy in a class D area some cheap properties for around $10-20k that rent for $400 month but you would need to have that much cash

I am not sure what other option you have because it sounds like you are being cheap about it.

Market speculation is just plain stressful for me and I can honestly say if we were sitting around and "waiting for the correction" so we could buy "cheap deals", we would have missed out on so much opportunity!

Cheap doesn't always equal good value.

So these need to be factored into your costs as you work your numbers.Find a good quality property manager and ask them for advice.Don't go for the super cheap property. 

Which leads them to acquiring cheap houses for little or no money down.

I would not get licence immediately, it is not that cheap to have it.

I also snoop around their Warehouse Deals site, I've gotten some great stuff for cheap there - I don't care if the box is torn.