Its just a promise to pay, and if they loose their job, or a leg, or a spouse, or any other reason, it could force them to stop paying, and if they can't start repaying, ultimately you would need to get a Deed-In-Lieu, or foreclose.Also, not to split hairs, when you buy the note, you are not the lender, you are just the note owner who receives all future payments; you never lent any money.

My wife was downstairs in the basement cutting someone's hair.

If it is the first then it would seem you have a case to challenge their requirement, since as noted on the chart there isn't a requirement for a PE signature on building plans for that specific project. 

In my opinion It's not ideal for rental.. at least here in the US (I noticed you are in Canada... not sure how it works there)Here you have to pay property taxes and insurance... you obviously need to pay for maintenance as well as property management (even if you manage yourself consider that your time = money)... you also need to take into consideration initial vacancy and the fact that sometimes it take couple of tenant's before you get a good one that stays very long termHere once I take all my costs out I tend to make approx 30% of my rent in the first year50% in year two and three 60% afterwards If rent is $1200, it would me bring net $400 avg first 12 months ($4800 first year), $600/mo second year, $700/mo afterwards... probably a hair more if I include a rent increaseYour interest payment after the first year is going to be approx $700/mo... which means you are barely making it.

Now that's an interesting chart!

I apologize I may seem absolutely off the charts bonkers on this.

Conversely, if you want to get into assets with some "hair" on them, but potentially higher yields and you have a tolerance for some risk, then a non performing note in the low price band could be a good place for you.

If you just look at the little Fannie Mae LTV chart, you'd say "oh you can go to 75% LTV no problem."

Your returns must be off the charts, Christine.I hear ya with painting quotes, bud.

Those numbers are off the chart.