Hi @John Daniels - the mortgage company I work for, Assurance Financial, is based out of Baton Rouge and we have offices throughout Louisiana.

The reason people do sub2 is to get around this requirement and not notify the lender they are transferring the asset.

It allows landlords to offer tenants a financial perk that can improve their credit health.

Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets. 

I’m going to consult a local financial planner but thought I’d ask the brilliant minds at BP as well.

--------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

It only happened once, so you have no evidence that this is anything but an honest mistake that's been corrected.The bigger concern is the 583 credit score, because it shows a pattern of financial mismanagement.

I've already had to turn multiple people away after running their credit reports, so I can already see that it's not going to be financially feasible for me to be covering the fees myself.

Prioritize your financial stability.

I understand the seller wants to move froward, but if they are not willing to give you information on the asset that you're purchasing, that is certainly not a good sign.