It can be risky but if you know who you're lending to and are comfortable with them and the deal makes sense, then it can be fairly safe. 

The more liquidity (cash, stocks, bonds), not 401K as that is discounted, you have the better as that mitigates risk, and since you'll almost certainly be obtaining a recourse loan your guarantee needs to mean something and that is based on the amount of liquid funds you bring to the table.Find a property that is "safe".

The way I see it, unless you have some contingencies in your contract that would allow you to back out of the deal safely, you have 1 of 2 options:1.  

I think it's safe to add a clause saying the leases are part of the deal. 

When I say lower end it is still a relatively safe and okay area (not big city bad). 

Have the RMLO look at the 1003 app, talk about the Ability to Repay RulesThe RMLO knows Dodd Frank, Safe Act, RESPA, and TILA.5.

My goal is to create wealth in the shortest time possible with safe and profitable investments.

If you purchase the "worst house on the block", it still needs to be (to use HUD verbiage) decent, safe and sanitary to rent.  

Which would be the most effective and financially safe for a rookie investor like myself, with a very limited budget?

Always listen to people speak, don't be so quick to speak, after you have asked what they do for a living, and then they ask you. ( You say) I put together lucrative real estate transactions so that my investment partners can make safe consistent profits.