Brian H.I self manage, but I run two different analysis.1. with 5% to know it can operate with me getting some funding now.2. with 10% to know it can operate with a PM.My thought is that its better to perform the analysis with the low end of income and high end of expense.

I know of some people that would lend money, if I had proof that I could perform. 

Do they perform property inspections?

Now you are tasked with locating buyers in your market, possibly a flipper or another buy and hold investor. 

Yes you are right that if the borrower defaults your exit strategy would be foreclosure unless you want to sell your non performing note for pennies on the dollar.

I closed on two properties last year, and both have been performing about the same, so I'll provide details on one just so folks who are considering can know some details.Purchase price $98,900, ~25% down, 4.375% interest rate 30 year fixed mortgageThe assessed price for the properties were lower than the purchase price, so I had to provide additional cash during closing (which is why the downpayment turned out to be more like 25% rather than 20%).  

@Chris Blount..I  perform basic estimates, but If it's a major problem, I get contractor in after house under contract(only)..Basically, during  inspection period...I also work with some good handymen for pricing...HVAC, Roof, Plumbing, Electrical(licensed unless it's minor)...If moving forward with deal most will come out, but might charge a small fee...Once your'e doing deals, no fee...

For the space a (void analysis) needs to be performed.

One of the guys (the president) has been in the real estate business for about 20 years and the other guy has been doing marketing for about 20 years and now, among other things, teach a class for$67.00 per month.Keep whatever niche you select to a simple task and keep it simple, when you start.  

Once they are ready, they can upgrade to Aquisitions manager and fly solo.The overall goal is to get to a position where we just have to oversee these positions, solve problems as they come up and track performance.