A few additional context that may make this a bit more complicated:- ideally the 1031 exchange that I do will then add my wife to the picture with the trust that we have established (however it's easier to do)- the property was previously used as our primary property, but is now a rental property for at least 4-5 years- an alternative is the sibling is open to gift annually up to the gift limit so that we own the property outright prior to the exchange, but that will take quite a few more yearsThank you!

I'm understanding that everyone's in agreement not to blur the lines when establishing your criteria for accepting or rejecting an application...

Building on a lake requires experience with the locale and building regulations.

I know that it will never get to that point but I wanted to establish that verbally.Realistically, once I leave it's not like I'm going to be getting rent for that unit anyway so if he's late I won't really consider it the end of the world.Would love to hear people's honest thoughts.Thanks,

For the reasons previously mentioned.The closing attorney did not answer the question I had about what to do if an investor buys using Subject To, sells on a wrap and there is no equity (as you rightfully say, the current crop of investors believe to be okay to do) We shall see as they fail, in Subject To's that are bought over leveraged, or sold on wraps, what course of action the investors will attempt, in order to try to avoid the DOS and what response the regulators will have.

Check local and state regulations and what might be coming soon for building standards and regulations for a RCFE.

U will get in trouble if this is brought to light to a regulator at the department of corporate securities.. 

Is the land next to an establish road with utilities?

Now that you have proved things out and have a track record you should be establishing other sources for your loans.

With the discovery of Nashville many investors moved into STRs and so the growing number of units called for the regulation of the industry as a whole.