Whie DOS lender risk may or may not be high, being ininsured is... well, enjoy your 'asset protection'.

As far as meetups go, you can find a lot of local events posted here on BiggerPockets: https://www.biggerpockets.com/forums/521-real-estate-events-...I also have a list of Chicago meetups that I can share with you as well.

As for your ques if to wait, well, it depends on the market, in some parts of the country prices are still going up, slower, but still going up, other parts the prices are coming down, you know that area, what is happening there? 

If he's doing work in Pennsylvania and not complying with that statute, you may want to reach out to the PA Attorney General as well.

To simplify the scenario I'm envisioning let me put it this way: what does a BRRRR look like when one of the parties contributing to the down payment and rehab costs ultimately ends up being the renter as well?

Right, but to get an ARV close to $130k, you'll probably need rent to be close to $1,300 unless you can sell it to a retail buyer, which could be a big risk on its own. 

It also did not have a pool like your property so that would probably lower the desirability as well.

North port is a great growing market, and I would expect that you will do very well on your first property. 

I'm happy to be a resource as well.

How would you manage risk?