Starting a Subletting Business?

[Account Closed]

Recently I applied for pre-approval in order to start looking for small multi-family units to do an owner occupied house hack, I was, unfortunately, denied pre-approval due to my low income.

So I had an idea and I was wondering if this is 1) Legal/Feasible 2) Effective/Smart or Not.

So because I am unable to get approved for a loan I was thinking that I can search for houses that are renting below market value, sign a lease making sure that I am able to sublet, and then sublease that same property out for a few hundred dollars more each month depending on how far below market it is. I could even potentially get a lease option on the property and then use the tenants rents to pay into that and essentially buy me that property.

I was thinking I'd probably be wise to use an LLC to do this in order to avoid personal liability, but other than that what do you think of this idea?

I can't wait to hear your thoughts!