I would encourage you not to think of everyone in your market as a competitor but rather a collaborator.  

I would encourage you to figure out how it will be possible for you to live on much less than you make.

The point of those features in those loan programs is to encourage mortgagee participation in those markets.  

I am not encouraging EVERYBODY to invest in SF or Honolulu but to look in their local investment area and take into account the potential appreciation in the various areas and property types.

@Giovanni Isaksen : Thanks for the encouragement.

I find his perspective to be very practical and it has encouraged me to look to invest in my first rental property out-of-state, but I need to find the right people to make my first RE venture a success.

First let me say that you have gotten solid advice on here from some very experienced investors and I want to encourage by letting you know that loosing EM happens to a lot of us at some point. 

I got into this business because I found that I could have a triple win impact (my investors and I make money, the customer/tenant get a clean/quality home for their family and good service, and we improve housing which benefits the community) and I would encourage you to do so as well.Also....Whatever your investment strategy is WILL have an impact on your lifestyle (whether you get sleep, whether you have to worry about your tenants getting shot, etc. etc.). 

Your attorney or tax specialist should have the expertise to assist you in preparing the operating agreement correctly.If you are not self-employed I would encourage you to do so immediately.With self-employment you have immediate legal tax benefits for personal income retention just like Warren Buffett.To Your Successful Investing.It is a Terrific Day!!

@David Wandel  Wow, that is really encouraging, thank you for sharing.