It is also evident that you left out many of the operating expenses, such as management (even if you do it yourself), utilities (even if only during vacancies), office supplies, legal fees, evictions, damage done by tenants in excess of the security deposit, entity maintenance, lawsuits, capital expenses (not technically an operating expense), etc, etc, etc.You might want to read one of the 50% Rule sticky threads in the General and Landlording topic areas.Good Luck,Mike

So neither of us have any income to secure the loan...would a bank even attempt to loan to us?

Many methods for building a list of buyers, collected for your convenience, is right here:http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-

That way, its three totally separate transactions, but you have at least a little security for the money while he has it.

This is a public forum and if your method is legal and valid, you should not be getting any "heat" from anyone.

How do i secure a million dollar investment?

The dollar plummeted recently when the Government purchased Treasury securities on the open market.

This could potentially replace social security with a Federal 401k.....

There are pro's and con's in each of these methods... 1.

Been doing this for a while and I have some colleagues that are doing the same thing and we have no problems with the method.