In either event, expect lenders to require 20%-30% of your skin in the game. 

I think it's more of my desire to have some skin in the game rather than playing from the side lines and being in the "analyzing" phase, although very important.

It also irritates me that it's been an entire week before they even reply.

Too many contractors out there to hire to risk my skin being nice.... my 2 cents...

You get lied to, have to chase payments, cheat, steal... the whole 9 yards... and deal with normal evictions, and see how quick you want to fix stuff, it's a whole different animal.. but it's a need in the  market, takes  really thick skin though.Just a thought with the neighbor, give her your contact information, and tell her if there's ever any problems to contact you!   

I was thinking that I could put up the money on the home and just collect a "mortgage" payment from him.This seems very risky to me because he essentially has no skin in the game, besides having a place that he and his family can live for $350 per month. 

It is true that you are using OPM, but most investors want your skin in the game.  

My hypothetical is not indicative about my own personal ability to put "skin in the game" or close/make deals.  

I could tell in his face that he was shocked at my response and equally as irritated.

Because you have less skin in the game.