First, is there a Capital injection by the borrower in the activity being financed, it's just a skin in the game, as a lender I want to know you will get hurt if I get hurt.

Shawn, would YOU finance your properties to a complete stranger who doesn't want to have any skin in the game?

In particular, since I have no skin in the game yet I am wondering if I should target properties that would cashflow at the 800-900 range where there is much less competition from mcMansion rentals.

I'd suggest you look at commercial financing, since you have a multi adjacent to the home, you may be able to refi with a blanket mortgage using the equity in the multi as your skin in the game for the acquisition of the home.

In any kind of business dealing directly with people you have to get a thick skin and not take things personally.

@Mimi Essie,  I don't know the rules as I'm new and I'm not an agent, I have no skin in the game, but given your post, I would search for the property below. 

I would havel liked a larger deposit, but I assume the SIP counts as a rental agreement, so I didn't want to violate any exessive security deposit laws.Hopefully that is enough skin in the game to make sure she vacates on time; leaving the place in good shape.Also, we requested a copy of her new lease, so we can verify she has intent to leave.

What is your skin in the game if/when things go wrong?  

I have invested in RE for many years but now want to learn how to flip houses in my local market -  Ventura County, CA.My question is will hard money or private lenders loan the full purchase and rehab costs on solid, viable deals or are they looking for investors to come in with a percentage so that investors have some skin in the game?  

The security deposit is a way to make sure the tenant has some skin in the game.