This should not be viewed as losing friends simply making new ones. 

When the title company, escrow agent or attorney prepares the closing documents, they simply factor in the second mortgage payoff amount into the final distribution of funds to the seller.A second mortgage should have little or no effect on a homeowner's ability to sell her home.

They simply made that representation when I talked to them. 3) They were the ones that called it an investment:).

I like offering up suggestions, opinions, information, etc on other threads, however I have never started a post simply to share information.

You will need to figure out what your city is lacking and try to fill the holes or find something they didn't know they where lacking.

My theory when it comes to new investors in real estate is what holds them back is lack of knowledge of the market.

I love being a private lender but the fact that it simply increases my taxable income makes me consider shifting some of my note portfolio to multi-family perhaps...You might find this discussion beneficial where similar question is raised: https://www.biggerpockets.com/forums/51/topics/604...Owning notes in your retirement account (especially self-directed Roth IRA or Roth Solo 401k) is ideal since you can have tax-free income for the rest of your life if you utilize one of these vehicles. 

He simply covers the mortgage for the property.   

The market here is exceptional, due in part to its lack of dependence on any single industry.

A much simpler way is to simply buy the house then quickly resell it.