@James DeRoest  to your point I have two good friends in Oregon that went this route against my pleading with them not to .. as I have extensive experience in those markets and with the asset class.. and they did not.one sold a fantastic 60 unit at a 5 cap which is what multi trades for here in PDX these are B's  and bought C class 300 units in Oaklahoma city.. not 8 months later she called me in a panic and wanted to have coffee.. they were ready to lose the building...

In an absolute worst-case scenario, which would I rather lose?  

On the flip side, cashflow is not nearly as good as some other areas that may or may not be more exposed to the boom/bust cycle.So if you do find a good deal, it will probably be a good deal forever, and it will probably not lose significant value in economic downturns, but the price you pay for that stability is lower cashflow.

it is deductible and some smaller expenses are just not worth losing a tenant over. 

I guess I got screwed from my realtor, b/c I was hesitant to do owner financing, but my realtor made it sound like I can't lose.

Its really not up to you to lose money because the previous owner "liked" this tenant. 

Does that mean I can for lose on the property this September?

There's nothing better than to not have to worry about completely losing your lifestyle because you got fired. if you have the passive income to back you up, you can come to work everyday with a giant grin and just dare your boss to mess with you and fire you. 6800 per month is a very decent wage and i would milk every penny of it out of the company before packing my bags and saying goodbye.

Since I was 17 I wanted to learn about investing in real estate but the fear of losing money took control of me.

@Steven Pauleverytime I do one I have several exit strategies plan to sit on for a good amount of time, and am ok if I lose my entire investment.