I very much have a long term play and "don't care" about the cash flow immediately, but obviously I don't want them to negative. 

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

Quote from @Amy Smith: Be careful you don't get in too deep.

I personally used a 40k ADU grant with CALFHA HPP Cares that covered a chunk of the cost.

Still have to be careful though, with the block-by-block challenge, depending on the Class of Neighborhood.Also, be sure you understand the difference between the City of Detroit and the suburbs!

And there are landlords who only care about maximizing profit and nothing else.

I believe if your mother-in-law runs out of money that Medicaid will step in and pay for the nursing care.

I predict that the guys who are fully leveraged and cash flowing $100 per month will be motivated sellers when the next big correction happens.actually its either them or they walk and its their lenders selling that is what happened in that time period.. and was pronounced in certain markets.for me personally  I don't want to risk  my credit and finances and borrow 75k to make 1200 a year... or even 2400 a year if its a market that has a history of no appreciation and I don't feel there is going to be any significant appreciation.. 2 to 3% a year does not cut it.but I will take 500 a month negative or 10k a month negative if I think there are huge gains at the other end.. 

They do have to step in and pay on the underlying note while they foreclose on the wrap this to protect their credit and theoretically project their equity The issue with all this sub to and wrap stuff is under capitalized investors or investors that dont know enough or investors that have a no morals and just look at these like if it works great I have little money into this no real equity and I am not on the loan so if it does not work I will just walk off .. or really bad actors that get into title rip rents and never pay the underlying I have seen that more times than you can imagine. this sub to  wrap stuff is just super dangerous and I dont care who is training people on it there are just to many things that can go wrong when your sub to deals or wrap deals are with owner occs and their mortgages.. seller carry backs like we did worked fine and the deals were smaller in those days. 

Most work with us, some do not.Be careful also as they may tell you to keep their security deposit as last month's rent.