If the person fails to make their payments I would foreclose and start the process over with another 5% down and another 30 years.I see this as a way to create a steady stream of income without having to deal without being a “landlord�

Purchasing a modest 3 BR house for $40k in certain US markets that rent for $700 or so are the real estate equivalent to buying a bond (steady reliable income with little to no increase in value over the long term).

Basically I was choosing to have no steady employment.People criticize what they don't understand.  

Sure it's nice to go and buy nice things when you have a little bit of cash laying around but think of all the things you could buy with a steady stream of income coming in every month.

They offer good paying steady employment over the median and upper income.Colleges and universities are another great economic anchor, another recession proof institution that covers a salary range that is conducive to support real estate activities.Look for diversified economic areas, you don't really want a "company town" or a particular industry driving the local economy.

Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.We always have them submit pay-stubs. 2 - 3 most recently ones give us the information we need.

Another thing is, has your income been steady before switching to this new job?  

Certain things in life ring true - people who maintain steady employment, good credit histories, no legal trouble, no evictions, and are nice people - usually don't end up as deadbeats, and the flip side is also true.

But I would go with my first choice for steady income until I can move into something different

I listened to a podcast a while back where the interviewee stated that he had luck using the online auctions sites and he had a steady stream of properties that he was acquiring with perceived ease.