There is heavy competition for both on and off market properties, and the margins are slim.  

I keep hearing that even if a tenant loses in court and is ordered to pay me the rent she owes that seeing the money is slim to none. 

The chances of the appraiser increasing the value are very slim. 

Side note: Be careful with hard money lenders.... a lot of them are a little "slim-shady" :) In all seriousness, there a lot of people that don't operate in a method that is actually helpful to business, but rather prey on uninformed people who are just getting started, which is why I recommend referrals as often as I can.

Consider a plan like this...Join a REIA like CFRI...Go to the monthly meeting and network, looking for a good long term property management Company that will unclog toilets at three AM for you and collect rents, etc.Work with an investor friendly Realtor looking for duplex through fourplex rental properties.Having that type of property, the chances of having the entire property vacant are slim, so you always have cash flow for the mortgages.

I have been looking for properties here in the SF Bay Area, and pickings are slim, to say the least. 

If you are staying local in your area the best practice would be show loyalty for your friend, because chances are slim another realtor in the area would have more, however again judgment is yours because while it’s slim there is a chance another realtor has a pocket listing or such.

He seems entertaining, just the numbers the rep stated, unless there's some sort of rebating makes very slim margins (I could be wrong). 

Cash flow of $1,000 a month for a 4-plex is pretty slim so it's possible to see how this could end up with the bank.

Chances you get this to line up perfectly are slim.