I don't think the typical sub-to deal would lead to equity skimming because they are likely close to foreclosure and there isn't enough time to rent the unit back out and make money allowing the unit to go to foreclosure.

I am thinking of getting a list of leads and using the owner info to mail postcards or letters to find small multi family.

I really like Lease to own option to get into deals without having to take on massive debt.

However, you can get loans that are based on the performance of the rental and not your personal income and debt.

Overcrowding can strain plumbing, electrical systems, and air conditioning, leading to expensive maintenance issues.

The owner does not want to extend the debt for 30 years.

If you use the unapproved documents terminating the lease and it leads to an eviction, you'd be wasting your time having to redo the process again.

I make around $110k+ per year, live off around $75K, have a mortgage ($1900/mo for rent, escrow, tax), around $40K in equity, and no other debt. 

I would still do due diligence such as whole property inspection, lead inspection (depending on when the property was built), appraisal, etc. 

Using HELOCs or IBC to pay off debt (simple vs amortized debt) method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment.