When you do a "subject to" purchase in a trust deed state wouldn't that deal send a red flag to the trustee who is the watch dog over the security instrument on behalf of the lender - thereby, triggering the "the due on sale'?

Hard money instruments are suitable for newer investors, but as issuers gain experience and a track record they're less risky.  

So in general there is a higher chance of not being able to recover at all due to being in a junior position as those senior positions claim all the available equity leaving none for juniors.Past that the complexity of collecting on notes stems from two ideas the collateral and the security instrument and note.

I was instrumental in the build to rent project in 2015, building over 50 homes to rent.

Now look at the deed or instrument putting the property into your name.  

>>>(b) Every provision in a written instrument en-tered into relating to real property which purportsto forbid or restrict the conveyance, encumbrance,leasing, or mortgaging of the real property for useor occupancy as a family day care home for children,is void and every restriction or prohibition in anysuch written instrument as to the use or occupancyof the property as a family day care home for chil-dren is void.

I'm a new real estate investor currently living abroad but looking to invest in the US (My local market is particularly unsuited for investing).

Link to Fannie Mae "Due on Sale" exemptions with transfer to:a limited liability company (LLC), provided that the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Here is the link: https://www.fanniemae.com/cont...

Here is a link ( https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html) to Fannie Mae exemptions to "Due on Sale" clause that includes the following: transfer to a limited liability company (LLC), provided that: -the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and -the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence). 

That higher dividend/coupon/cash flow is the reward you get for taking on the higher risk of investing in a higher risk financial instrument.