When you do the math to compute the interest rate, it will be very high, and you'll be accused of usury.

A professionally implemented RUBS also sits better with tenants and lessens the chance that you'll be accused of over billing, etc.Good luck!

Now - all of that aside - it really is kind of a brilliant plan, with the possible exception that if any of these properties have a mortgage that have an occupant clause, you could be accused of mortgage fraud if anybody signs an occupant clause but then doesn't live in the property within the appropriate time frame.

I'd be concerned about being accused of negligence if something went wrong.

On more occasions then I can count, I have been accused of making LIFE too "black and white."

Can't say I'd recommend this process for getting back rent, but if the tenant is acting like a kid....http://www.whiotv.com/news/news/crime-law/former-waynesville-citizen-of-the-year-accused-of-/nWTZs/

Anyone here is one accusation away from having a search warrant served on their property.

Oh, and another thing, the tenant had one of their friends call me and yell and accuse me of trying to take advantage of the tenant.

Enjoy.................................................................................Below is the start of a saga about Real Estate Investing - wrought with accusations...

I have arranged for a cleaning person in the past, he let her in once and then accused her of stealing and refused to let her in again, FYI, he was there the entire time watching her and she did not steal anything, she came highly recommended by many of the neighbors.