The amount due for a loan before you get one is called a loan origination fee and that is usually  done by someone with a license (which you do not have) this is so the lender knows that the paperwork is done correctly. 

Also if the building needs repair or is already rented will factor into the loan amount, terms and interest rate.

BUT when you are just getting starting, it may be hard to get only listings or any substantial amount of listings until you get a solid referral base.

It'd take you decades to recoup that amount in the form of rent.

Unlikely it will sell at the auction, unless someone bids the full amount owed including of course all accumulated interest.  

The remaining amount of money that I have; that my friend gives me is going to be back up money.

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp The second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

If so, it might be to your benefit to work with her and raise it to an amount that you determine she can afford while she looks for a new place. 

Long term goal is the make this an investment property PAY IT oFF AnD hAvE IT FoR AdDITIONAL RETITEMENT INCOME Asking price is 205 Offered 200 I wanted to originally put down the 3% But after seeing the numbers (monthly) I’m not comfortable paying that amount.

I’d put down the least amount you can and fix it up to get appreciation.