I am going with an succeed no matter what approach.

I think there were a couple of RE investors at this dinner and someone brought up contract for deed and whether it was a good idea or not.

But, do take a step back and approach talking about it a bit differently.

You can also refinance after going the hard money approach.

Peter and  Scott, you both brought up interesting points and questions.

I would not have issue also if he brought the seller to me. 

I am thinking about approaching a gentleman (known 18 years) about a sandwich deal. 

You may want to reconsider your ultra conservative investment approach in order to grow and actually achieve positive cash flow.If you are buying homes worth 50K or less and renting for $850 + per month you are not doing as badly however you should try to find a way to pull all your dead equity especially before the markets turn and you end up losing it all.Paying off rental properties is not investing it is hoarding of cash and is extreamly expensive.Just food for thought

You brought up a good point on the fixed income - mainly through social security.

If you have friends in low places this is the easyist and most cost effective approach.