This means that a fraudulent return could theoretically come back at you (or your estate) 30 years down the line.

Which is not true and riskier to only gamble on appreciation I think.

I've lost money on deals that I took a gamble - Detroit homes with more taxes owed than the value of the property, and I've made money.What else can I tell you?

We've seen a lot of fraudulant materials come through over the past several years. 

Otherwise, you are just gambling that the bank will not call the loan if/when they discover you have left the property (which probably states it will be owner occupied in your loan, if it's a primary) and are no longer making payments. 

If one has to take care of other family members, then that adds another level of stress and complexity.If someone is on their own and wants to gamble, sure, some will take a shot.

You'd be better off just investing in one of the many note funds rather than straight-up gambling for a couple hundred extra bps. 

If your seller files bankruptcy after the sale and the Trustee believes the sale was fraudulent because it was for below market value and seeks to set the sale aside, I think the title insurer might deny coverage. 

The 350k will earn 15-20k/yr recouping a good portion of the gambled amount. if that works out do it again.

I'd probably have better odds going to a casino and gambling.