Yes, you do pay interest on this debt, but the returns outweigh the expenses. 

This being said, I would only recommend a sub to to a homeowner who has no other option, or for whom the negative consequences and risks are outweighed by the benefits of doing this type of deal.  

While the rent is guaranteed, I learned that the maintenance issues far outweighed any rent guarantees.Section 8 conducts yearly inspections which is great. 

End of day, there need for US purchasing outweighs the sore feelings. 

Better have a solid deal in this environment to go that route otherwise the risks out weigh the rewards.

While the closing costs may be higher than a HELOC, the long-term interest savings might outweigh this initial expense depedning on the property value, LTV, credit, etc.Really depends on your strategy/perspective (short/long-term play, where rates are going, current fianncial position, etc).

Without any skin in the game the downside far out weighs upside.

Here's some helpful perspective, gleaned from experiences in many areas of tax & financial, without addressing the specific company and trademark that are being discussed.Establishing a 401k/QRP for someone that doesn't qualify can entail tax risks that greatly outweigh any purported benefits of 401k/QRP. 

Each person probably just needs to determine if the added layers of potential protection outweigh the added hassle, bookkeeping, costs, etc.If I was going to use a LLC, I think I would personally be inclined not to do a separate LLC for each property, but maybe one LLC per X properties.

We are in the Seattle market, so reality is that demand so significantly outweighs supply that on new construction you aren't really at risk of not selling, its more for at what price per sq ft it will end up selling for.But one mechanism build in is that there is a $100k buffer where he will hold at least $50k of his build fee until after house is sold.