The biggest pro of using FHA and conventional financing is you can easily use them to house hack for 3-5% down payment which is an extremely low down payment. 

At this point its extremely likely the individual will default and the foreclosure process will happen and it gives a person who can access the documents a heads up that this is coming putting you in front of the people in C above.Where do you get these documents from?

The last thing I recommend is going out too far away into things you have little to no experience and trusting people too much. 

So, proper screening is EXTREMELY important!

- Even though we structure it to be like a regular LTR as much as possible, ultimately this is still a partnership and the two sides have to have a certain level of trust/respect that's beyond a typical landlord/tenant relationship. - For the right people (landlord who wants hands-free ownership but achieve higher than normal LTR rate, and arbitrager who has the skills and extra bandwidth, AND has confidence in their own ability), I think this kind of arbitrage model is a win-win.I'll be operating in the Triangle area. 

@Lambros Politis2.1MM purchase, 300k gross, 30% expenses seem extremely hard to find.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

I hate to hear about students getting stuck in difficult positions because they put their trust in these guys.

Yes, you can seller-finance the property with a wraparound mortgage (also called an all-inclusive trust deed).

I’ve built a solid network of contractors, hard money lenders, conventional/DSCR lenders, and property management companies that serve as my trusted boots on the ground contacts in Memphis.