There is a contract that is signed.These are "quick" transactions, within days, that the borrower (Subto student) needs "immediately" to provide a non refundable emd, for a Subto transaction.

To address this, we verify the property owner per government records and use this information to vet imposters.Anything that seems suspicious will lead to us requesting an acceptable Letter of Explanation to address.Analyze IncomeMany landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income.

The MLS (pulled from public records) shows it as a 3/1. 

There's a high chance that you are feeling FOMO from the returns in public markets, sell your houses for a loss, pile into stocks, and then see mediocre performance while real estate heads back higher again.I see this, and similar actions, play out over and over.Personally, I'd stick with the real estate rather than selling it.

These loans are not allowed in non-owner occupied scenarios. 

Tell them you agree the $5k is theirs, non-refundable to you.

Read this article from the FDIC to understand the risks of using a non-bank company.

You can finance the purchase of an investment property in an IRA, but you must use a non-recourse loan, which typically requires a 30-40% down payment.

All REITs are required to show their FFO calculations on their public financial statements.

You are unlikely to get caught and the city governements don't really care.