Many people don't want to self manage from out of state, and professional managers can suck up alot of the cash flow, and not do as great of a job as you would've hoped. 

If the applicant comes from the pool of people that I or my tenants know, I use real estate as a way to give back as many of my tenants will not qualify credit wise or may even have a criminal background or would struggle for another reason if I were to just stick to the "background/credit check" criteria. 

I agree with all of the points laid out here, but people should also be aware of the benefits of TDAs such as: 1.

Ridiculous and stupid people.

While this is a great and highly motivating goal, most people are either clueless or incorrect in their belief as to what is required to obtain this “lifestyle”.Understanding of the “how to” get there is further obscured by the misleading, and often patently false “pathways” sold by real estate educational MARKETING companies as workshops, upsold to association memberships, upsold to mentorships.

Now some people may argue higher interest rates are good, as it drives out competition on new acquisitions.

People move, people get busy, people have remorse, people get new SPOUSES, and very very rare is the X that is 100% cooperative and willing to sign anything that gets put in front of them. 

Might be nice for your personal home but I do not think on an investment property is worth it - except for the marketing angle as people like our salt water pools.

In regards to your offer, I am always willing to learn more from people who've been there and done that. 

So they would first payoff the first mortgage, if there is a second then $ goes to the second and if anything above that goes to any other lienholders or the homeowner.There are a lot of people who invest in 2nd mortgages because they are cheaper than a first, but in Ohio (not sure all counties) you have to pay off the first at foreclosure so if you do not have the money to pay off the first you are out of luck.