I have always thought this was an interesting proposition for STRs.I think it would make more sense if you had a few in an area with a common theme.

That is a very different proposition - as you would be sharing your common spaces with a stranger.  

At the time I was busy with my main business working with tax foreclosed properties, and I didn’t really have the time to do NPNs on the side, but it seemed like something I could expand into in the future so when Scott approached me with a JV (Joint Venture) proposition to passively invest in some CFDs he was buying it seemed like a great way to get some exposure to how these played out.

I personally would be careful trading options with borrowed money… seems like a risky proposition.  

So the implied proposition is, "Buy this run-down house... pay ALL the closing costs (often both sides of the transaction) to buy it, invest a significant amount of money, sweat and tears to bring it up to market condition, then sell it while covering your typical closing costs as well, and your spread to do this is max $50,000 according to their ARV.  

I think your proposition would sound complicated and hazy to most investors.

What is the value proposition for the tenant?

It's a business and if you have a good value proposition and there is some demand you can make strong cash flow.

I’m a Rehab & Retail investor —- Joey  I have been asking BP members this for 10 years and you will get folks chiming in your crazy to pay 20% CRAZY and will shoot it down.. there are those that understand the value proposition folks like us bring.

It is such a big opportunity for someone to establish themselves in that space, but finding the people talent is not an easy proposition.