These types of loans are extremely safe to lenders, as they are certain you will make your payments, since you are at risk of losing your home if you don't.

Like a card player going into a game without sufficient reserves for a bad or misplayed hand, you need to bring money into this game or risk losing your shirt.

In their minds they think something is a can't lose proposition but then after we talk their eyes are opened to the reality of a particular asset class.Those C to D areas you have to go in with the mindset that you might lose it all.

But spending money you didn't know was in your account, and assuming that a tenant would do what they said and nothing would go wrong, was, well, short sighted at best

Oh and the delusion that your out of sight, out of mind "investment" benefits from your absence,  But penny wise, pound foolish. 

I wish I had more time to be involved with that type of work.I wish people in the city with power to make decisions, understood how much investment never comes to the city because of their short sighted policies.

You have nothign to lose before you walk away.That being said, I wouldn't take "any" house just to get started.  

welcome @Matt BernthalThis sight has some great resources and people on it!

The acquisition costs are unsecured and you lose a lot of benefits of investing in a tangible asset that you actually own and control.

Regarding negotiating w/ the bank;  very rare nowadays for the banks to accept a price reduction but there's nothing to lose in asking