So it is either don't buy, or compromise.

Both people need to be flexible and in the end neither may be happy (that usually means you have a good deal as there has to be compromise on both sides).  

Tenants need to get that when they rent, there will be some compromises - unless of course they pony up for a rental with monthly rent higher than most mortgages.

It can backfire spectacularly and your friendship will be torpedoed.It happened to me.Do not at all assume because they are your friends that you will all have the same ways of thinking, expectations, common sense, sense of compromise, give and take.I was a realtor for a spell some years ago.

Being a landed immigrant, you need to be careful to not compromise any visa that you have until your permanent residency status is secured.

One idea that came to me while reading your situation is that in order to not loose your 11K probably you could invite someone else to be your partner that way you could save your 11k and not compromise all your resources for future investments.

If you have a really nice property, going below a 10 cap could be acceptable, but I wouldn't compromise too much. 

“The cost for this is quoted at $1,850. 3) “sister existing floor joists where notched and structurally compromised”. 

Easy to rent as it’s a prime location, and if you can make it a 1/1 layout wise that’d be a good value add, I’d imagine. 500 sq ft is plenty to make a 1/1, as long as the layout and flow aren’t compromised.

Try negotiate a compromise - only $100 pet rent total (although $100/m for a cat seems excessive to me, especially when if they charge security deposit and pet deposit/fee), maybe half the pet deposit/fee.6.