Most on this forum can't even come up with a downpayment, you can't expect them to ride HOI/tax increases, vacanices, etc., with lower leverage and less cash flow on a property.

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.

It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

BUT...if you're American and can still get loans in the US (the silver lining of having to still file US income taxes while living abroad), then why not use leverage?   

Technically it would be best to get a C Corporate or S Corp. to flip properties and since you are considered a dealer if you do several properties a year and this could have negative tax consequences in an LLC.

Again, consult your tax accountant. 

You are being very conservative to avoid making mistakes, and that is a rare, admirable quality in real estate that is often undervalued. 

I wish I could go back and have all my loans with my local credit union who keeps them in-house to avoid all this. 

This protects your investment and gives you leverage if there are issues.Other Tips:Make sure the lease explicitly defines the move-out date.Conduct a thorough walkthrough with documentation before and after the lease period to avoid disputes.Handling a seller-to-tenant situation can be tricky, but with the right precautions, it can work smoothly.

Assuming property taxes + insurance added don't go above $1,100 total, you could maybe make this work.