Since we did not have the HELOC process started and escrow opened...we had to decide what we were going to do or else we would lose the deal.So as of now, we are doing 5% down owner occupied.

I've read over and over again on the forums if you live on the west coast just invest out of state, but I would prefer to get started around Seattle to grow a portfolio.Very excited about this venture and entering the realm of REI.

If I'm planning on buying a house every 1-2 years, would this be a risky investment knowing that if the market corrects, then I could lose a lot of rent from tenants and then be stuck with paying more on my house.

What are the pros/ cons of partnering with him in a business venture vs. just doing my own thing and paying him as my contractor?

The worse case is you lose $11k (your cost of walking away now) + $500 engineer cost.  

If you purchased a property with higher historical cap rate AT a lower cap rate, you would likely have OVERPAID.The two quickest way to lose money in real estate:overpay for a crappy propertyoverpay for an awesome propertySo the lesson is simple - Just never overpay!

I definitely 100% disagree with local investing being safer, IMO, your risk of losing money is going to be higher in your market.

they  are to show redacted contract of highest bid.. and this is America agents have a code of ethics and can lose their licenses for not being truthful..

Turnover is expect in this venture.

If it goes vaccant for any time at all your just losing more money.