Quote from @Elias Halvorson: Aloha Diandre, You will get 100 people responding on here responding they can do it and their company focuses on it.

It sounds like a few people on this thread don't really understand how PMC's operate or why they may charge extra fees.

I think I would recommend people start class b but I recognize the challenges to get the numbers to work.  

So they would first payoff the first mortgage, if there is a second then $ goes to the second and if anything above that goes to any other lienholders or the homeowner.There are a lot of people who invest in 2nd mortgages because they are cheaper than a first, but in Ohio (not sure all counties) you have to pay off the first at foreclosure so if you do not have the money to pay off the first you are out of luck. 

I really feel this is helping people find affordable rentals.  

Some questions for the people with experience: What are some basic landlord problems I will most likely run into?

Most people are not rich there, look at the cars. 

A4: If you pay as “friends and family” – then yes, need 1099s.Q5: I only need to send 1099s to people, not to LLCs, right?

In regards to your offer, I am always willing to learn more from people who've been there and done that. 

Now some people may argue higher interest rates are good, as it drives out competition on new acquisitions.