It's important that the sponsor has some skin in the game too and is investing alongside the limited partners in whatever property is being purchased, built etc and you have to be willing to tie up your initial capital for 3, 5, 7 years etc potentially.

A lender doesn't want to lend to a person who has no skin in the game.

NVREA recommends getting seed capital from credit cards to get skin in the game but this site does not.

I have severe eczema which limits the things I can do that involve coming into contact with my skin.  

Subordinated debtLoan from relativesprivate moneysyndicationetc.That said, most investors typically want the buyer to have some skin in the game.   

But to be considered as a serious REI, you will have to have some skin in on the deal.  

She'll think you have no skin in the game and will be a higher risk than originally thought.

However, these properties often carry their own set of difficulties, including deferred maintenance, tenancy issues, vacancy, lack of appreciation due to neighborhood, or Section 8 troubles with the local housing authority, so you should be ok with a higher risk investment if you look in these areas.

It is not because of So Cal ROI but because of difficulty of doing out of state REI. 

You want to be in the middle rent rate or lower.So if 26 2 beds rent in the market for 600 to 800 a month be at 700 or lower.700 X 26 = 18,200 a month X 12 = 218,400 gross expected income218,400 GEI X .50  (50%) costs - 109,200 NOIMake sure with rent rates there are no rent credits as that brings effective rent down and also any immediate deferred maintenance needs to be deducted off of offer price.If landlord pays water or other utilities  then 60% costs annually is common for ( vacancy, eviction, management, repairs, etc.).You would do 218,400 X .40 (60% costs) = 87,360 NOISo an 8 cap at 109,200 would be about 1,365,000 sales priceAt 87,360 about 1,092,000 sales price.When a partner comes in they will want skin in the game.