My biggest fear is losing a lot of money, as I'm still working a day job and living in an apartment.

Water looked like "Fear Factor "Liability times 1000.Between tenants what a nightmare!!!

If you're making decisions based off of fear of what others think of you... then you might be better off buying a nice multifamily property and living in one of the units. 

I understand that a lot more goes into the equation but lets assume everything was done correctly ie: structural engineer inspected the property- repairs were done by a reputable company with a long term warranty etc.I'm basically asking do people fear foundation problems so much that they turn away from your properties regardless of how well the work was done/or what experts inspected it?

You're a sucker and allowing fear to dictate how your business is run.Market sets rent. 

I am tired of sitting on the sidelines and being fearful of making the leap. 

I want this amount invested to be material - if the deal goes south, they should lose, and the amount needs to be large enough and meaningful enough to them that they will have a healthy fear of loss, not just optimism for upside. - How long have you been executing this strategy in this market? 

@Andrew Steffens  That would help ease our fear of putting all our money in one place forsureAre 10% down investment loans a thing???

But right now I am fearful of what she might say next or how she will act.

Nothing mentioned anywhere on depreciation so my fear of selling is that I am going to be hit with a penalty.