When people bring up Subject To (very risky) and private money it's usually because they have seen a lot of scaling content.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Basically the city sends their own inspector out who compiles a list of items that are required to be fixed usually within 3-6 months of taking ownership. 

Like maybe I could pull enough out from heloc on primary residence to pay off debt and then rent out my primary and use the extra cash to payoff heloc and then do another heloc once the original one is paid off.

Is the ROI worth the extra cost?  

If they have nowhere to go or don't know how to find a next place, and no relatives who are helping them, you will be the only person that goes the extra step to help (even with advice) which means you will get the sale at a better price and help someone.

Those "good contractors" usually have the lines of credit or means to pay for supplies up front if they know they will be paid on time and are not desperate for a deposit to go get the supplies.

@Sonja RevellsThey usually communicate to the seller there are liens and their proceeds would be less because of the payoffs.

Is the extra headache really worth it? 

In other words even if an investment was a "rip off" there were usually signs that indicated such (warning flags) at the time the investment was in the offering stage.