Notice he says “finds”There exists a pool of “buyers” who will make an offer with zero intent of closing at their offered price, they will find something to retrade a substantial discount or simply cancel. 

We put together a small fund to start and pooled money from a handful of local investors.

The majority of the buyer pool wants a vacant property that they can live in. 

I am trying to get first property since july not having much luck no track record trying seller financing  no luck I don't have 20% for a bank loan I am talkin to banks to get the 20%  business loan so I can put in hard money loan/ private. my plan is to do a back yard lease option but I live in a small city nobody like the idea of seller finance so how do I get going?

Comp for a new house is probably $400-$450, depending on quality of course.Right now, there's about 100 brand new 3 level SFH development going on right in its back yard, ranging from 1700-2100 sqft. 

Ideally its always better to invest in your backyard but depending on where you live barrier to entry might be high..

There is a very large pool of renters and the price to rent ratio is solid.

I like the exit pool and I like owning houses.

New landscaping to back yard.

If so, how do you anticipate managing properties out side of your back yard?