However the one staying has to show proof of income that they are still able to afford the rental amount without the roommate.

I could, however, rent it seemingly for the long term and still come out ahead each month with the higher loan amount post-cash out, so affordability wouldn't be an issue.

I am not completely broke but what I can afford is mainly marketing myself.

The money situation worked out like this:New loan payment on Seattle house goes from 2300 to 2900 a month, 4 bedroom 2 bath houses are renting for 2900-3000 a month around where I live (3 miles from microsoft).I pickup the new house payment at around $3300 a month, something I can afford and will put some sweat equity into to force appreciate it a bit over time. 

In that scenario, people will not be able to afford every day items let alone real estate.

I'm trying to build some extra cash flow with wholesaling so I can afford down payments on property's.

On my low-end stuff ($30k-$100k), I do half of first month's rent, otherwise no one could afford to move in.

I'm nervous that the owner might balk at the fee I'm earning and I can't afford to sue him right now and he doesn't have anything for me to get but equity anyway.

Lastly, the foundation guys and roofers I use are great for that as they get these massive jobs where people can't afford their services.  

I'd consider it a safe investment, if you can afford to hold for a while.That being said, your buy-in will be significantly (prohibitively) higher than most places in the US.