I think you have to be burned before you learn the true danger of risking playing with fire. 

It's a great theory, and when it's done right it can be great, but the danger in that method is that you're the one carrying all the risk, and relying on the company to perform.

Don't put yourself in a dangerous area.Also, does that income of 4100 include the rent you would receive on the unit you intend to live in?

That seems extremely dangerous. 

In one of the recent podcast a bigger pockets they talk about the dangers of working with friends.

Darby, Pa was just ranked the second most dangerous city in America.

(Not that that's ever happened to us).You could start out undercapitalized and initially get into low value loans such as dangerous 2nds or into low-cost out-of-state areas you know nothing about to borrowers you’ve never met against properties you've never seen.Similarly, you could advertise online (Craigslist, LinkedIn, and yes, BP) and take an ill-advised chance on strangers.You could break the law by advertising in states that require a license to simply call yourself a lender.Not understanding licensing requirements in the state you're lending.Lending to anyone who is inexperienced.

I operate out of Nashville, TN and I'm able to provide clarity to my clients due to our continued explosive growth, job increases, and built in residence due to the large number of varied and successful businesses here. 

With regard to shortage of vendors, I 100% understand that, but they should have warned you up front.If you have no cap on expenditures that can be made without prior approval, that can be dangerous.

Never invest in any location where the population is stagnant or declining.Crime - People and companies will not move to locations perceived as dangerous.