Those of us who wish to have financial freedom need to keep pressing on with our dream.  

Lenders are out there that do less than 50k  .. however if you just paid 20k your going to be hard pressed to say its worth 50k and take out more than you put in.. you need to own it for a time and probably show some improvements.. cash out refi above basis is very very risky in these low end high risk rental Niche's and lenders know it.

We were pressing a little bit, trying to find deals where they didn't exist. 

Of course some new home buyer can put up signs showing discontent with the builder that will give them bad press they do not want.When you are holding the builders payday you have their full attention.

I'm not sure if you're familiar with the Boston rental scene, but if your property is priced-right you will be rented year-round with 0% vacancy (on the September 1st or June 1st rent cycles).Admittedly, the Boston real estate market is very expensive and you'd be hard-pressed to find deals the "BP community" would applaud as a success given the "50% rule" and "2% rule" for buy-and-hold properties.

If people all over the country are talking about an area it might be 'too late' , but if the more regional press is starting to take notice prices that might be an earlier sign. 

I said all that to say this, I've learned more from my first property being under contract then I could've ever learned from just analyzing REI from the bench.

Avoid any conversation about your ability to buy by deflecting his questions and using your "partner" as the source if he presses you.If you have some ideas of values for similar properties in the area then you might make him an offer at a discount to what the current value is under the guise of its functional obsolescence.

OK...OK...I know Google is alive and thriving, but you would be hard pressed to prove it by reading the BP forums lately!

Some brightly colored benches by the front doors would look good, but might not be the best choice if it's a low rent neighborhood-- you'd have to decide if you think they would stay put or "disappear."