I lived there for a couple years and I met this guy who has bought and managed a ton of property there. 

Hi Guys,My duplex in Oakland is zoned RM-2.

A tenant may try to befriend you so that you'll feel bad about kicking them out if rent is unpaid, etc.

Bad tenants and squatters are wholly different situations.

I was going over his financial information and saw that the guy was making over $50,000 a month and asked him what he did.

Why do you say its bad for the original owner long term?

I let a guy lease all the street facing units. 

My wife and I have overhauled our personal budget to reflect the 'pay yourself first' approach (allocate in order: income comes in -> invest -> donate -> fixed expenses -> variable expenses -> fun $$).We are looking to see what experienced people generally recommend for a holding tank for that 'invest' allocation while we target our first real estate deal.What financial vehicles have you guys used that works well for this?

I'm in Virginia beach as well, Ill keep you guys in mind.

if they are pressuring you like this.PLEASE watch the American Greed Episode on Remmington Financial  .not saying these guys wont or don't fund of course.. but when I do my deals with my banks its common that I pay for the phase one and the appraiser directly..