Yes, men and women can most definitely be friends.

BUT.....!

In your case, she's crossing that friend line by telling you every day that she loves you. If it was just a friend sort of love, I could see saying it ONCE like "hey, you mean a lot to me and I love you as a friend." and leaving it at that. But saying it every single day is taking it too far.

I don't think you're reading too much into all of this. Your friend is blurring the lines. She seems to want that emotional intimacy without the sexual part. (Cuz lets face it, it sounds like the sexual part is all that's missing in your relationship with her, right?)

If you get a girlfriend, things will probably go haywire with your friend. I wouldn't advise moving in with her because honestly, as a female myself, I would NEVER get involved with a guy who lives with his best friend who tells him every day that she loves him, but both are just insisting its just a friendship. That would be drama-rama right there!

If she is only a friend, things will have to end with her if you have any prayer of wanting a close relationship.....close sexual relationship.....with a female in the future. Yes, men and women CAN be friends, but your friendship would not be good for either one of you once you get involved with other people because there is no clear "friend" boundary line. (And the line has already been crossed, so even going back....it probably wouldn't work.)