However it is sad though that I will have to be alert and cautious under those situation when I really like to help people out whenever I can.

It's all a bunch of smoke and mirrors.The good syndicators will have exit plans and be cautious on underwriting.

However, these were all institutions and loan officers who are used to working with owner occupiers, who can be very cautious when dealing with a situation that is slightly out of the ordinary. 

As for the down payment, if I can get 20% and still have it cashflow well, I'm going to try to do that, but on the other hand, I want to be cautious about being over-leveraged as well.

@Matthew CrivelliI don't think a lot of the more cautious folks are saying "prices definitely will not drop and will only go up!" 

Be cautious, as this is all too familiar. 

-Ilyce Glink"Now by no means will this deter me from pursuing my REI dreams but it does make me rather cautious about trying to make my area my primary market.

You won't have title, so the cautious and educated put the whole thing into a trust or some 'entity' to protect it from future potential creditors and claim holders.  

BTW, be cautious if you plan to change out that valve.

Best way to prevent it is to be cautious of who you rent to.