They usually collect all docs upfront and then underwrite once the appraisal is completed.

Again I cannot collect rent to justify this cost/effort.  

It allows them to keep those afloat and can collect fees on that side by retaining ownership of the deal. 

Maintenance at at PM company or one of the big hedge owners like AH4R, leasing at apartment complex will teach you a lot about applications, fraud, leases, collections, evictions. 

The host can exert too much time to collect or they can choose to not collect and pay the expense.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

An 8% protected preferred return or a 10-12% target return. 3) Our passive note platform (Swell.investments) has yield from 8-20%. these are loans we have already originated and are available right now and we are happy to keep vs. matchmaking or crowdfunding where you only get to invest if the marketplace collects enough investor dollars or the matchmaker has a deal ready to fund (what you call whole trust deed investing).

I haven't seen much said about them but I'm satisfied with what I've experienced.. they've made me money and I collect rent every month.   

Easy peasy. still haven't been able to collect on the judgment though 4 years later ;-)Personally, I wouldn't do a Sandwich Lease Option. 

You are collecting payments on your wrap note and mortgage from the owner of the property and sending on some of the payment to the underlying lien holder (or better having your licensed servicer do this).