So I could earn extra return and 2. so I'd have additional skin in the game).  

Both employment verifications were glowing… “go getters”,”long term prospects”, “very good hire” and so on.

If they require borrower to have 10% skin in the game or a net worth equal to the loan amount and you don't meet either of those requirements, be transparent with the bank.

We normally figure $6K for closing costs here in MA.The only risk to these I know of is that sellers might decline your offer because you have very little skin in the game.  

You are putting up $20k cash, he bears the financial risk if the deal goes south...all else equal, I'd say a fair profit split would be 70/30 or 60/40 in your favor since you have skin in the game and his risk is contingent.

A third aspect to look at: The net effect of what you're actually paying.... investing skin deep Mortgage insurance in 2014 is no longer deductible (consult a tax pro) so if you pay monthly MI and you'll have to use after tax dollars on this expense of owning a home which may dramatically increase the cost of borrowing.

This may not be your thing but placing handwritten bandit signs in the area where the house is located will have your phone ringing off the hook and a great way to add to your buyers listExample:House 4 Sale$25k Cashxxx-xxx-xxxxJUST MY 2 CENTS BUT THERE'S MORE THAN ONE WAY TO SKIN A MEE-YOW

They have no skin in the game!

We buy houses that professionals will live in and have a lot of skin in the game to encourage them to live up to their expectations.

They will all want some "skin in the game" or some of your own money in the deal,  especially with you being new.