It is great to introduce myself to like minded people.

This presumes you make smart purchases that cash flow after paying all their expenses (Principle, interest, Taxes, Insurance, and a maintenance / Capex reserves).The risk of leverage is if your properties AREN'T making money - maybe you misjudged your income, or you run into repairs that cost more than you expected or budgeted for.  

Wholesalers can be a great resource as they will take the leg work out finding the properties for you, but assigning contracts can come with difficulties in the title.

I would like to use it as collateral to borrow 42k from a private lender, interest only payments in the 8-10% range for 12 months.

Hello,Interested in property management company advice in missoula. 

Yes, we have been doing lease/purchase and lease-options deals for over two decades.The rent+own strategy is particularly relevant when prospective buyers are having a hard time qualifying for a mortgage, either because mortgage rates are high or because prices are rising.Kinda sounds like both are happening right now, doesn't it? 

Any Psychology guidance is greatly appreciated.

Happy to connect and assist you in your real estate investing journey.Happy to connect if you are interested to expand your portfolio@Albert Bui @Carlos Valencia

its great that you are taking the leap into Real Estate investment, and Venice Florida, its an interesting market with its mix of vacation and long-term rental opportunities.Given the current market conditions you are describing - stagnant with a surplus of inventory - there might be some advantages to exploring both vacation and long term-rentals.  

Prepayment penalties usually are added to a loan to give you better terms, such as loan to value and interest-rate.