The hassles might not worth it even with the 37 cents on the UPB.My purpose is to buy the package and then re-sell some notes for cash and keep some and restructure the notes so they become affordable with the property owners (assuming they want to keep it).

Then resell them on ebay with the box when you are done.

They sometimes even put a seasoning requirement of 6 months (that is, you cannot re-sell the house until 6 months of owning it).

Happens all day every day, nothing underhanded everybody's happy and everybody makes money.You are correct, is is not nefarious to create paper and immediately resell it, with or without a discount.

On all 4 I did some form of the strategy that I mentioned about the price that is recorded on the deed, or to re-sell it to my wife at a higher price.

I have plans to buy my first home, but i dont want to just do it the traditional way, I would like to be able to buy something with as much discount as possible and be able to do some rehab, get immediate equity and live in it for a few years and then resell.

Or are you thinking of this as a possible "value play" where you can raise property #1's CAP rate to a 9% or so then reselling it to another landlord investor at a 7% CAP?

would like to purchase and resell, fix, repair sell.

Rehab for resell is NOT suggested.

However, there is nothing preventing a buyer from closing on the purchase and reselling at a mark-up.