The matter of fact, an investor client of mine just asked me to go out and give him a rough estimate (+-10%) tomorrow afternoon for a project that he plans to turn an offer in.

You'd have to triple your money on that $5,000 you're losing on their offer to match mine in five years!

Her properties are just couple of blocks from mine and I know what are the challenges and rental going on. 

Reminds me of a competitor of mine in the hard money business that stated after two years in business he had no loan in default.  

I'm not saying this is a bad investment strategy; however, it is not mine. 

Also, you can do your own loan with my organization, and avoid the costs and also have access to the money and property deals.Investing in real estate (and I don't want to hear about the "lucky" ones over the past 5 years where a dog with a note in his mouth could make money by buying at $250k and then selling for $500k----this is luck and stupidity from buyer's in the market place not "slowing it down" and bidding too much----remember $800 gold stocks?

I am worried about the tenant’s privacy and mine and some of the problems I might encounter living close quarters.

Except mine of course!

I can have it for 128,000 because the seller is a friend of mine and that's what he wants for it.

My belief is that trustworthy and great Property managers are worth their weight in gold and should be given more business.