In the event of a financial emergency, you're not obligated to make the higher payment.

If you take a year to figure out your first purchase while paying down personal debt and saving cash hopefully this will help secure a liquid down payment for your purchase without raiding your retirement accounts.I am against raiding any retirement funds for down payments on house for a new investor as you might not like being a landlord and could find yourself back at a W-2 job and starting over for retirement.In a "diverse" retirement portfolio real estate should be a part of your retirement plan not the entire portfolio so consider the 401K in terms of diversity in your portfolio.On top of a liquid down payment and having a 3 month emergency fund for your investment property might allow you to be a better investor and allow for a better nights sleep.

If he is unable to care for himself, call upon his emergency contact person or other support systems.You also have a need to receive rent on time.

Also - I am not sure that this 20k is even his emergency fund...this could be extra disposable cash. 

This could be cash in the bank if you are conservative or in your 401k if you think you would borrow from it in an emergency.  

Do you have emergency fund back up.

My question is this - is there such thing as an affordable housing/ protection capacity for retail tenants in emerging markets?

You dont want them calling you at 3am because of something that is not an emergency.

I think it might be done in emerging markets, appreciation game, but YES it's very risky and you need exit strategies that won't hurt seller. 

@David Faulkner you don't have to sit on the far ends of the teeter totter, especially if your playground is in an emerging market