I currently own 15 rentals with no debt and plan to hold paper.  

Initially, I wanted to house hack this property but with the 4 units breaking even with their rents, on paper living there for free wouldn’t be an option.

Hi Laura, I have done a few deals with family and friends, and the Most important piece to this deal is ensuring that whichever direction you move in is clearly explained to all parties, written down on paper (preferrably with an attorney) and signed off on by all parties. 

He doesn't want to use a bank because of the paper work and qualifying he says.

these properties look great on paper, and the purchase prices can be appealing to someone in a HCOL area like CA... but they often need lots of work. 

Claim paper losses from your business.#6.

Not property that cash flows well on paper.  

If you can get them to sit down and figure out the actual losses they will take on paper, maybe it will sink in.

@Nora Lugounfortunately it's difficult to just "get a mentor" - I'd go to some local REIA meetings and network.here's some good reading before you buy a random property in Memphis because it looks good on paper. 

Joe that is the way its suppose to work and exactly how we did our sub toos  as you point out though when this technique starts to get marketed to the NO money no Credit RE crowd its going to cause some severe headaches for Sellers and Buyers.you hit the nail on the head of Chris's situation I am guessing and if I was buying paper like his fund does I would do EXCATLY what he is doing buy discount have the right to accelerate and get cashed out spins the APR meter dramatically for an investor or a fund.