Partnering with specialized real estate attorneys can also provide invaluable legal guidance, helping you navigate the complexities of foreclosure laws, title issues, and potential legal pitfalls.

States that do require a license to lend/broker on 1-4 Resi Investment Properties: CA, ID, OR, NV, AZ, UTStates that do require a license to lend/broker on 5+ Multi/Mixed Use or Commercial properties:CA, ID, OR, NV, AZ**not legal advice - do your own research. 

And when legally challenged, they didn't step back, they just kept working the angles. 

Quote from @David Kanarek: do you not agree that he has a legal obligation to disclose financial problems to investors?

At this time, 30 day rentals are legally allowed for any property in Kailua (unless the association has stricter rules), and I know some people who do quite well renting their SF homes on a 30 day basis.  

A lower margin in a secure legal system with affordable properties that rent and sell fast is worth more than owning a million dollar place with rent control taxed to the limit overlooking Central Park

Should a family issue arise, you have zero ownership and basically zero legal say. 

Any opinions out there on if I would have any legal right to get the earnest money returned to me or should I just be happy he is willing to let me out of the contract and consider the $2,000 em cost of doing business?

It's advisable to work with a real estate attorney who is familiar with subject-to transactions to navigate any legal complexities.Risk and Liability: As the original borrower, you retain liability for the mortgage even after selling the property "subject to."

A property manager can handle tenant interactions, maintenance issues, and local legalities, providing peace of mind and freeing up your time.