Any telephone conversations, correspondence submitted via US mail fall into the categories of wire fraud and mail fraud.Without the permission of the mortgage company there is no way to legally do this.

Any other pros or cons to this method of investing for at least getting started? 

Buying properties back then in the Bay Area and doing nothing turned out to be an amazing wealth building strategy :) But, it more than tripled his net monthly income making this move!

Plus, they can give you the lowdown on the whole process and help you every step of the way.You've got this!

What made you interested in investing in this type of deal?

The good contractors won't have an issue with this setup.

Then this could be provided to my lender to show coverage. 

We considered using the cash out for buying a new multi unit property and using the greater income from that one to pay the remainder on this house  monthly but obviously that's not a great idea.  

I love this and do a similar exercise with our properties.

The remaining $150K in this case is still eligible to be offset by any NOL from my rental properties from LLC #A.