BiggerPockets

When I just started working for myself and my fiance' was in school, we bought a multi-family and lived in one unit, using a no-doc loan which means the bank gives you the money without verifying income, assets, employment, etc. In return you pay a higher interest rate, but that's one way to borrow without having much in terms of income. It does require some money down and the interest rate varies depending on your credit score and how much documentation you will provide (providing absolutely nothing results in higher interest rates, naturally). We can then refinance later once the situation improves.

Another small angle: you can get higher % of a home financed (up to 100%) if it's owner occupied, aka you live in it as a primary residence. Most investment loans require 10%-20% down. If you have no cash or credit then you're really not in a good position to be buying real estate investments from the bank's perspective. So, buy one for yourself and live in it two years (to get the cap gains exclusion). Then move and rent it out. Hopefully by then you've built up a little positive credit (assuming you pay your mortgage on time) and can save a little $$$. Then buy your next personal residence. It's a slower way to accumulate rental property--one every two years--but it saves you one interest rates and gets a higher % of each deal financed/leveraged.

Only partial answers, but frankly I don't think there's a simple, single answer.

I don't care whether you use straight options or lease options, by using an option and then mastering networking and negotiations, you can be successful without cash or credit.

I see many folks talking about subject too deals, but for my two cents, I have always found it hard to get someone to sign over their deed unless they are in terrible shape. To me, it's much easier to do an option, network and make sure everybody wins.