for someone who only has 1000 cash. and bad credit. is it best to start investing with lease option properties to get in the game.

Yes. Depending upon how you work the lease option, they can be almost risk free and you can start on the cheap. No down payment, no bank qualifying, very little cash needed if you are assigning your deals. Which is probably what you should be doing with only $1K in reserve.

If you use a Lease Option, be sure to include your consideration,[which is usually something of value the buyer gives to the seller] one example would be , “paying the fix up costs during the lease option period”. Meet the sellers needs here for the best results.

With only $1K in reserves, I wouldn’t recommend you get involved in landlording of any kind, including a sandwich lease. Too much potential for problems. What happens if a repair is required? A vacancy?
Instead, assign your option or lease option, collect some money upfront, be done with the deal and do it again.

Wholesale or Lease options are great for starting out. DO not be discouraged by lease options if you do not have much money. Just make sure you do a few key things.

Don’t guarantee payments to the sellers until you have a buyer lined up. Get a large enough down payment that you can handle any guaranteed payments. I typically get 10-15k down. This is a great market for lease options. Many people need to sell and many people who have $ can not get financing.