Knob and tube is very difficult to insure. 

HOWEVER - it may be difficult for the appraiser to access the true value if a large percentage of transactions are not in the MLS.  

Needless to say it's been difficult and I've wanted to sue them.

The squatter possibly has warrants on him and will be difficult to locate. 

I have heard that CA is very competitive and very difficult to find deals in.

I also understand that some cash buyers, unlike many of those motivated by greed, are honest and knowledgeable, however I find it difficult to identify them.

@Diego L.That's a loaded question that is difficult to answer on a public forum.

It may be more difficult to get financing and a good rate buying through an LLC. 

@Matt Schreiber you won't find any Class A or B properties that cashflow - whether SFR or MFR.Price & interest rate increases have made it very difficult - unless you find something off-market BEFORE an agent or wholesaler finds it.

It slows down the unethical operator.But it is rarely actually mortgage fraud, which is typically related to the paperwork filled out and documentation provided to originate the loan.Since someone buying on SubTo rarely signs paperwork with the original lender, he isn't telling the lender a lie and therefore making a claim of mortgage fraud against the buyer is difficult to make stick.