I don't think charging a reasonable rent is morally fishy, unless you subscribe to the belief that you should be providing the financial contributions, and she should contribute in other ways. 

I just subscribed to propstream and skip traced a list from there. 

I recommend subscribing to their newsletter.

And the person needs to be turned in and prosecuted  LOLI am all for profit's  its how we do business.. but taking advantage of the elderly simply is not one that I subscribe too.. a 240k property that only needs 20 k in work.. is certainly NOT only worth 90k..most folks would be tickled pink to pay 150k a 240k prop that only needs 20k... had this seller simply gone to a reputable realtor and the property was exposed to the open market fair market value would have been achieved for all.Now I get Hoarder houses and super low value deals... etc etc.. especially with how intense the asbestos laws and lead paint laws have gotten.. the old days of just a wink and nob get rid of it is over.so on the face of it. some of these homes will need to go for VERY low dollars to make them viable.

Subscribe to the BiggerPockets Money and Rookie Podcasts2.

Subscribe to the BiggerPockets Money and Rookie Podcasts2.

While it's nice to have your own securities lawyer and necessary if doing business online investors may come forward from many different States on an SEC 504 reg D filing with just a handle of local investors we suddenly had blue sky laws from 4 different states as peoples subscribed with their out state LLC's quickly subscribed its hard to turn down those investors as accredited investors, I Found many investors held their money out of state in LLCs even if they were a neighbor the source of funds was a 401k or LLC in another State. you would have to spend more money writing investor subscription terms for each States special Blue sky laws. it's usually the cheapest to file with Federal SEC to cover all investors.

But as you know it became a fad and grew like wild fire and the deals were subscribing so fast that there was no way the investors could have done a minute of Due diligence and it played out EXACTLY like your describing..

Subscribe to the BiggerPockets Money and Rookie Podcasts         2.

Subscribe to the BiggerPockets Money and Rookie Podcasts         2.