Their ability to recover their money should you default is much lower in this position.

And she's hardly saving money if she's using an electric space heater as the only source.

I've never heard money/profit described as cute, so it's not important.The most important thing you mentioned, was the rent potential and ARV. 

Was that purchase money, rate and term refi, or cash out refi?

There is almost no scenario where a condo would ever positive cash flow while servicing debt, and very little positive cash flow with no debt.If your budget only allows for a condo, find a better place to put your money to work.   

With Laundromats the the machines are your money maker (I know duh, but hang with me). 

This would be a waste of everyone's time and money.

But I didn’t need to worry–they had a lot of money!

The other way I fund deals with none of my own money is using a private lender that I have years of experience and relationship with and/or using HELOC and other business lines of credit.

This will cost you a lot of money and time.