Sub2 pitfall scenarios?

[Brian Spatz]

I'm currently working out the numbers on acquiring my first rental property through traditional financing. However, I've also been looking into 'creative' financing to add 2-3 additional units quickly in succession, and feel that Subject To deals may be a prime tool to make this happen.

Generally speaking, my area has a good amount of original owners who are now getting to their 80s+. If the opportunity to execute a Subject To deal comes, could anyone bring up potential issues if say, a family member takes over their estate through power of attorney or if the seller passes on? I don't want to get all morbid, but I feel the bank would be a bit concerned if they got word their lendee is no longer with us, and it was almost an issue when we bought our PR last year.

Obviously I understand that if my renters don't pay, then I'm on the hook to pay out of pocket to keep their mortgage current. But is there anything else someone can think of?

Thanks,

Brian