I want to.jump headlong into this business, but still have a 9-5er's mentality.  

.:)Texas worries me a little with the heard mentality going on right now. 

I suggest you not get into real estate with the niche mentality at all.

Do their estimates figure into your analysis at all when vetting, or is that just prepping them mentally for the lower offer?

@Josh Norris  I'm impressed you received 6 bids and one that was detailed that much (must be from a new guy that had no work).I try to put myself, mentally, in their position and it's a different dynamic.

What to do with owners that have mental problems.

Ultimately I just failed to account for a lot that should have been obvious but I mentally discounted on my walkthru.

But I'm fairly confident that if I hadn't had a "just do it" mentality and bought that first property, I might not be an investor today.I totally agree with @Joe Villeneuve about being careful with your home equity, and I think Sam J. proposed strategy is a great one too.

My biggest worry with a Section 8 housemate is that the individuals reason for needing assistance would be something that would make them a challenging neighbor, and you are not allowed to ask if a prospective tenant has a mental illness. 

I view the types of loans that follow this mental picture as being prime performing loans on the right and defaulted loans on the left.