This leaves friends/relatives wanting to help you out (emotional based investing) or people unsophisticated and naive (likely disciples of a currently heavily promoted guru).When I, or any other investors (with significant capital) I know of invest, either equity or debt), we only consider deals where (1) the “sponsor”, or borrower have a significant investment of their own capital, unless they’ve owned the property many years.  

I STILL live at home and my parents are urging me to get out of the house but I don’t want to make a big financial mistake and purchase something out of emotion.

I STILL live at home and my parents are urging me to get out of the house but I don’t want to make a big financial mistake and purchase something out of emotion.

The problem is you are emotionally involved and don't seem to be cut out for landlording.

Some are data driven and profit driven, others are emotionally driven and have grand visions of great appreciation through long-term holds.

Right now it sounds like it's an emotional decision rather than factual. 

However, other variables like economic conditions and emotional purchasing decisions can result in subpar investments and lower returns."

They have wants and desires, and presumably among those wants and desires is: not crushing the dreams of home buyers, getting additional business from lenders and sellers, doing the right thing in the face of ridiculous government regulation, etc.Perhaps you are able to complete your job with zero emotion (unlikely, even though you may think you do), but most of the rest of the world can't, even if they might want to.As a smart investor and business-person, I take advantage of this when possible.

Yes, she won, but the toll it took on her emotionally and financially was, in her own words, devastating and not worth it.

But they are not.Motivation is an emotional thing, not a logical thing.So back to all these strategies each with advantages and disadvantages.