A few deals like that and some time and then you can start looking at 1031 exchanges in to larger properties and repeat that same process at scale. 

My state is very landlord friendly and I don't mind taking that on in exchange for equity. 

Any gain or loss realized by a dealer in options from the sale or exchange of an option to buy or sell property is considered ordinary income or loss under paragraph (a)(3) of this section.

Then again, purchasing a true "turnkey" property means you are typically paying a higher premium in exchange for someone else delivering you a cash flowing, low maintenance asset.I would gander to guess that 99% of people do it the latter way you described. 

Feel free to connect here if you’d like to exchange ideas along the way.

More and more, I make less than optimal financial decisions in exchange for ones that are decent financial decisions, but great happiness decisions.  

A couple of my all-time best deals were bought in precisely the peak of the overall market.

-Mexico citizen, born and raised in Colorado, and over the past few years I’ve been actively investing in Mexican real estate — mostly in presale condos and long-term or vacation rental markets like Guadalajara, Cancún, and Lake Chapala.I originally started by looking for affordable, well-located properties for personal use, but as I dug deeper, I realized there were real opportunities for long-term appreciation, rental income, and geographic diversification — often with as little as $20–30k down.The process isn’t as complicated as people think, but there are definitely key things to understand, including:How foreigners can legally own property in Mexico (especially in restricted zones like the coast),How presale contracts and developer relationships work,What kinds of rental strategies are viable in different markets (Airbnb, mid-term, or traditional long-term),Currency and exchange rate considerations, title safety, and banking between the U.S. and Mexico.One major advantage of presale in Mexico is that many developers offer in-house, interest-free financing during construction, allowing buyers to spread out payments over 24–36 months — without involving a bank or mortgage process.

Know precisely what you want (and what you don't): Age, bedrooms, views, furnished/unfurnished.

In December of last year, we purchased our current primary residence and helped a family member buy a STR (using a 1031 Exchange!).