Security is essential - these places get broken into quite often.Your tenant, if not already licensed, will have to go through an extensive background check that also requires site visits to ensure compliance before they even get started.  

Also doing miscalculations of percentages that is owed back to the money lender and the whole paper work of legalities.

Ok, so there's a whole back story (and tons of lessons learned--see more on that below) wrapped up in this question, but it  essentially boils down to this:I started a flip in April with a hard-money loan.

As a bonus: you will avoid all of the appraisal fees, loan fees, interest, and paperwork as well.If you are interested in learning more - happy to chat further.Best,Yousif

The Wisconsin A.G. noted that difference in their early paperwork.

I quit my job and am essentially living off of the rental income from my home (I moved into a workshop on the property and rent out 8 bedrooms and another workshop on the property).

But i do realize that you said that their income may not be sufficient. essentially if you can find someone to put a 100k in a "savings account" with a delayed return then you have a great opportunity.

Sounds like you loaned money that Would be in second position, if it were valid and recorded, but there is a first mtg which prohibits a second mtg, so you have essentially loaned money, unsecured.

The paperwork for a Subject To transaction is definitely not something you're going to want to do on your own.

Keep the balloon 10 years + and get a good title company to draft up the paperwork.