BruceThey aren't the OP's friends, they are friends with each other.  

Some thoughts on 1% rule:As OP points out, it does not guarantee cash flow.  

I am finding all sorts of properties in Lake Forest, Santa Ana, Anaheim, Fullerton, etcI know of low down and down payment assistance programs that could help too.I would also like to put together an investment fund for just the thing in OC.Thinking goes, we buy a multiunit and turn into a co-op or TIC [tenant if common] , this brings your cost of living down much further compared to a SFR or even an entitled condo. 

So much I could/should have included in my 'off the top of my head' OP!

I ended up co-opping with their agent to get the deal done.  

However, I agree with virtually everything the OP stated. 

Did OP ever do a deal with them?

@Chris SweeneyThese cordless blinds suck, like the op said you can’t open them all the way, especially if there is furniture or a desk or a tall ceiling.

For Comparison: Assuming the OP put down 20% + closing costs totaling $50K here is what would have happened if he put that money in VTSAX instead.Assuming that you invested $50,000 in VTSAX on January 1, 2005, and did not make any additional contributions or withdrawals, your investment would be worth approximately $244,000 as of May 2, 2023.

Kind of going the opposite direction of OP