I find that a very common hurdle that beginners have is assuming what a lender will or wont do. you said "I don't even think I would qualify for a loan of 100K" which may or may not be true, but you don't KNOW. what you really want to do is ask a lender what it takes to get that loan, rather than assume you can't get it and then blindly try to improve what you think they need. does this make sense?

Chris, Makes sense. 

I could purchase a home on the otherside of town for around 90k in cash and live there.what makes the most financial sense?

In a sense, you'll be business partners with him for the duration of the loan.

I called a few, but I get the sense they are not in a hurry to help.Any suggestions would be much appreciated.

Would making a LLC make sense for this kind of situation or would it need to be something else to buy real estate through.

When rubber meets the road, these low-cost/low-rent properties only make sense if you're turning and burning them, or are adding them to an existing portfolio where you have sufficient reserves already.I've got a property I am looking at that rents @ ~1750 for 2 units, so taking 10% for CAPEX -- which is an estimate on my part, good, bad, or indifferent -- sets aside $2,100 per year just for CAPEX.

I'm sorry if this comes off as not making much sense, but I'm trying.

Common sense still applies, even though it isn't a college course.

Damien,Thanks, that makes a lot of sense!