Regardless, build in the cost of having a lengthy eviction process into your numbers. 

Probably, Homepath, I'm not familiar with the Navy CU, the other is FHA bond money that can also work with a non-profit making the down as mentioned.If you have the cash down you might partner with your buyer and have him buy you out later on with a refi/purchasing your interest.I agree too, unless there is some motivating factor in working with this buyer, put them in a drawer and come back when they are real buyers. :)

I figured out that he was comparing REI with stock market investment (he used to sell bonds) and he was just looking at it from the perspective of cash on cash gains.

In commercial transactions you can have engineer reports, compliance fees, attorney fees, syndication fees, bond fees, tax credit requirements, transfer fees, accounting fees, title insurance, funding fees, loan insurance- guarantee fees the list goes on, depends what you are doing.

I choose a conservative stock-bond mix so that a Wall Street downturn doesn't burn me too much when I need the money.I also keep about $2K in cash to handle unexpected repairs, but I'm uncomfortable having much more napping in the bank. 

This often is a much cheaper and easier option than trying to find insurance for rental paymentsWe are also now allowed to use bond payments to cover rental income in arrears if the tenant is evicted and behind. 

Also by using a PM all my contractors are licensed and bonded.

More so than stocks, bonds or any other marketable security, the idea of owning something tangible and real and finding creative ways to make properties cash flow struck me as more exciting than the movies I'd seen about Wall Street.

I’m licensed bonded and insured.

To suggest Detroit has out produced Ca for any moderately lengthy duration is ignorant of reality that can be shown with a few minutes of research.