Most of the buyers are just regular folks looking for a home, so they are not at all thinking about cap rates. 

I think most BP folks would agree that you have the right idea, diversifying your assets with stocks, bonds, and real estate.

Perceived deception & missed payments are tantamount to losing the case.The lender sends the tax forms to the borrower under the borrower's SSN.

I won't double or triple-down on what folks have said above.

The perceived benefit to the investor is they either get the inflated price, or if the deal goes "bad" and the tenant defaults they get to keep all the deposit money and rent and all that.

Quote from @Marc Shin: @John Underwood my STR is in a neighborhood that could be perceived as a little bit sketchy..Erp.

I'm going to try and see if any of the long term neighbors want to do it, lots of pre-gentrification folks still here who might be happy to.

I would probably take the risk at $500, but $1k feels more of a ripoff like most guru programs. don't waste your time if they don't meet your criteria there is ZERO chance they will meet this guys.. remember they make their money with you folks dreaming of making money and paying for the dream.. 

Lots of folks here on the western slope look to move there.

[I think someone else provided an example of this case earlier]-Now provided you do qualify for purchasing a house (4 units or less), you will have no problem qualifying for a mortgage with a Schedule 1 bank as long as you provide the down payment (35% minimum of purchase price) and confirm proof of fund and the source of it- On the proof and source of funds, the banks would want to see an income enough to cover the mortgage payment and other expenses. and in some cases, they would want to make sure they know how you're going to cover your expenses (housing, heating, etc..) where you live.This is usually where it gets annoying for some folks but if you can satisfy this, you should be able to qualify for a mortgage just likely any Canadian tax resident, albeit you will pay a little more in terms of interest rate, etc.