(Not that I would go after them) You usually can only recover what is deemed as a sufficient time for you to get a new tenant... this might be 30-90 days rent, not 11 months.

What determines the success or failure of your choice is luck, your level of understanding, and your passion for it.If real estate is a goal simply to diversify, it doesn't have to be a primary business for you. 

No other choice.

I've also been thinking about partnering up, but am unsure how to go about it safely or if it is even a good choice.

In regards to capital reserves, do you think that the 50% rule is sufficient to account for that?

The borrower must be capable of re-paying back as agreed. 2.Repayment is made Monthly Quarterly or Yearly depending on the choice of the borrower and The Repayment schedule for a Loan is calculated and sent to the borrower.

If the latter, I certainly wouldn't agree to a 60-day maturity, I would request a minimum 6 to 9-month maturity in order to market the finished house sufficiently to sell at top dollar rather than be forced to sell quickly. 

HI Jonathan,Since conventional owner occupied on a duplex will require 15% down min and 25% down on triplex to fourplex you would be limited to FHA financing in most cases.3.5% down payment on 250k is 8750 which should be sufficient given the amount you mentioned you have above (25k).Yes you can use the rental income.The appraiser will need to perform a rental survey on the gross rental rates in the area.

But are they sufficient enough to make a reasonable profit?

All in all I'm sorry you had a bad experience, but I think you made the right choice in my opinion.