If the above is true, then maybe it would make more sense to learn how to flip houses since you could make your money in less than five years, develop a good reserve from flipping, and then be able to purchase other properties on loans from actual banks.So my main question is do you see any errors in my logic above? 

@Lance Robinson  great post congrats on identifying the logical aspect of landlording IE buy quality and buy close to the median in a given MSA... do not buy the bottom on the Median.this is quite inspirational to the future or present investor.. !!!!

I hate people, I am very analytical logic and have a healthy doese of common sense.I sound just like you don't I. 

If I'm hearing you right, the logic is that a slightly lower COC is OK at purchase, but you want to have a realistic path to get that rate of return up (around/over 8%) in the short term.

That was kind of my logic for needing a partner.

But logically that just makes no sense that a builder can raise their prices AFTER a construction loan has been approved by the lender.

Madeline,Get the longest term you can and pay it on a shorter amortization schedule.Here is the logic: If you take the longer term, then you have the lowest possible payment.

That's is about as logical as saying, "I just got my college degree...now I'm going to start making money big time, because I know it all".In both cases, the learning has just begun.  

On the other side of that coin as other members have pointed out these are not areas that many of us would enjoy a 9:30pm 10pm dog walk right before bed.My personal suggestion would be based on counties rather than just areas, but I am news so my logic maybe bias based on other factors and my personal knowledge of the area.

I'm a newbie; I don't know how to advise you on your particular situation in a logical way, but I'd be tempted to keep that townhome too. :) Best wishes!