STEP#1. First you have to recognize that in order to make money in almost any market (i.e. stocks, commodities, real estate, etc.) you need to have the market in motion. In other words, the prices or value have to be changing substantially, either up or down, for you to make money. Did you know that many traders back in the NASDAQ bubble made millions by adopting a style that made perfect sense for the type of bubble market that was being experienced? Of course this was financially devastating to buy and hold investors who bought at the market top. So what is the difference? The answer is a difference in investing/trading style and risk management.
However, I believe the majority of people dread having to deal with investment matters, and tend to jump into purchases and then hold their breath hoping for the best. After a long day at work and taking care of the family, it's hard to get excited about reading up on your 401(k) options, Morningstar ratings and fund performances.
Lease option money can pay for your vacancies if you know how to structure your contracts! I give you the complete contracts (sample forms that are filled out and blank forms that you can print out and use) in my book, "$0 Down Real Estate Investing With Bad Credit And No Job!" You can find out more about the book. Just for those of you who aren't familiar with the process of Lease Option, here it is.