Who knows, there may be a few people simply frustrated and willing to sell cheaply however.

THey have a property they want to get rid of an no one can afford the down payment.

(For a lease option ad) - Buyers need $8000 down and verifiable income of $5000 per month in income"... the people with $2000 down, $2200 a month in income, and that can only afford $850 in monthly simply do not call.Give it a try...

People can't really afford a second home in the Bay Area, it's usually out of the Bay Area, like Stockton, Los Banos, where you see a lot of forclosure.

They may not be as lucrative but they provide great ways to get into investing with minimal risk.That's the angle I'd take, let her know that it's an interest/passion that could afford you both a better lifestyle, a nest for your (future) children, an opportunity to see the world, etc.

They get frustrated because these wannabes make offers and then can't get financing or want the bank to jump through a bunch of hoops in order to close (lots of contingencies, etc).

What frustrates you as you search for REI info?

But I am reluctant to pay their fees, fearing that it might be a scam and I can't afford to crash and burn financially right off the bat.

No doubt there are other frustrated landlords in the area that might just sell...Short term, however, to attract the best of a given tenant pool, you need to offer the best value...make your unit stand out from the crowd.

But, you talk like you can't afford the payments ("I used what I had for carrying costs", "only one month in reserves for carrying cost".)