However you need to have big chunks of money to invest with a lower cost of funds to make it work as an investor. 

So for example, purchase price of 100K, and 30K rehab, what are the considerations regarding how to fund it? 

Results will vary by loan type and lender.An alternative that may resolve your dilemma is the use of a SD401(K), which allows far greater tax deductions than a SEP and allow you multiple routes to use the funds for real estate investment.

Hi @Ashish Khera ,I used to work with a Turnkey provider and that's the exact acquisition model we used; Buy all cash and then refinance after owning the property.Primary downside is your funds are temporarily tied up, but getting inventory faster is the major advantage.

My dream is to keep the house, totally renovate it, and some how use it to also fund an investment opportunity(flipping not holding).

Unfortunately, you can't accept any funds beyond the $480K if a short sale is done. 

Our income is not sufficient for us to take care of our family so we would like to get into real estate to help us build wealth for retirement and college funds for our kids.

I'd only pay the monthly landlord insurance (roughly $120) and snow/grass.I don't have the funds to extend an all cash offer but am contemplating working with a hard money lender.

—Uber founder and former CEO Travis Kalanick has taken the reins of a Los Angeles-based real estate startup, following a $150 million investment through his new fund, 10100.The small firm, called City Storage Systems, is focused on the redevelopment of distressed real estate assets.That primarily includes parking, retail, and industrial properties that “will need to be repurposed for the digital era,” Kalanick wrote on his Twitter account, announcing his fund’s purchase of a controlling stake in the company.Kalanick will become CEO of the 15-person company and expects his 10100 team “to be highly involved” in operations, he said.

@Ramzi Nuseibeh yes, you can have more than one property and should hold that money in a designated account separate from other funds.