As Jay mentioned they must be NMLS licensed if owner occupant of in several states even commercial needs licensing.The NMLS is like the database, each state has a division of banking that oversees lending requirements then you also on the federal level have CFPB as well as consumer protection laws.I want to add that I believe yesterday the CFPB is undergoing changes, but if it goes away that does not mean that many of the laws in place especially consumer protection laws would go away. 

They are not secured investments and you have very little protection outside of out right fraud laws.

Credit cards offer a lot of protections for the user, but that doesn't mean they are allowed to commit fraud with them.

But any improvements are at your risk.. the redeeming party just owes you your cash plus in our state 9% and any VERIFIABLE expenses you paid to protect the asset.

Proper planning will protect both parties, maximize tax benefits, and make your venture a success.This post does not create a CPA-Client relationship.

My view is there is more protection on a wrap than a sub to and with the right disclosures and underwriting can be an alternative option. 

A single family could ultimately be a lower price point for you but depending on how much money you have available to spend on the purchase and any repairs/maintenance, either one could work.Have you found any SF or duplexes that catch your eye or know how much money you have to spend?

And you spend all that money on updating it will be for not.

If you fix the inside of the house spend a bit of money on the outside. you don't have to break the bank but make an effort.  

He spends every waking moment in the field, making sure every seed is placed perfectly.