.), but he is absolutely convinced that there's no way I could buy lower end homes in my city to rent without ending up bankrupt.

If they go bankrupt during period can bank take property back?

If a prospective tenant has adequate income, a good rent payment history, no evictions and isn't likely to benefit hugely from bankrupting, I'll accept.

Tenant Improvement Allowance (TIA) which can be $10-$30/foot upon signing a lease, brokers fees another 6%, a failed business goes bankrupt and leaves you vacant and after 6 months you find a tenant but guess what, there's more TIA and more brokers fees.I kind of see commercial properties as a giant furnace of money.

Each recession an incredibly high percentage of them go bankrupt. 

However, keep in mind that even the most creditworthy tenants can begin to fail over time or go bankrupt, as history has shown us time and time again.

He's built a company from scratch to $100 million, then bankrupted it, then built another company from scratch to $100 million and sold it. 

No magic, therefore you are just as likely to be bankrupt as millions of people were 10 years ago.

I dont know how people buy at those prices and dont go bankrupt.

It is not "morally bankrupt" to stick to the terms in an option contract.