One of my friends suggested that if we form an LLC and pool our resources, we could buy more property, lower individual risk and get better returns.

You start with what you think can sell the house for and work backwards.I personally factor in my risk into how much I determine that spread to be.

Here is a great commentary on this topic by Calculated Risk: http://calculatedrisk.blogspot.com/2008/11/apartment-market-weakens.html Mike hit the nail on the head, doubling up with relatives becomes very common as recessions worsen.

I don't think you're getting much response because you're a high risk loan.

There is a much better chance that the tenant will chew something or go to the bathroom on the floor than the dog will.If the risk is less, there's less reason to attempt to offset with a deposit.

Your partner is taking all of the financial risk while you are doing all of the work.

Constantly learning new things is a good idea, so if you can fit the degree in with minimal risk, might be worthwhile.

I don't plan to skimp on things that, like you said, can put me at substantial risk.

If that were to happen with evictions, I (and every other landlord) would be out of business in only a few months.This is not only a risk on the state level.

void any relevant exposure to the counter party risk that is reeking havoc to basically every major investment bank at the moment.