In most cases, you'll need both the security deposit and the first month's rent, AND in a lot of cases (lender specific), the lease will need to be supported by the 1007/appraisal (even though Fannie says "Or").

The agent will prepare a commitment with requirements for closing including a deed from the party the insurer believes is authorized to sign the deed and any supporting docs they need to be comfortable in issuing a title policy to you w/o an exception for your concerns.

An out of control litigious society, and the things that really eat up modern family wealth have nothing to do with what consumers would expect.

Roughly 6 months till that mark.90 days - realistic timeline for them to sell their rental property to support downpayment.

I also use property managers for my properties.Additionally, unless you are an expert on Fair Housing laws you can easily find yourself in violation even when you think you are acting reasonably and find yourself in a lawsuit or under investigation.Finding reliable contractors is an issue and a good property manager should have those relationships saving you time and hopefully money.Navigating non-payment of rent or an eviction can be time consuming and expensive and a good property manager should help you avoid needing to do that with good tenant screening or have the legal resources to deal with it if you have to.You do have to manage the property manager and watch expenses especially for large repairs.

What would be the biggest challenges or hurdles to making it happen (e.g. infrastructure, safety, government support)?

The barrier is the additional complexity - now you are operating two sets of books, and filing two tax returns, and have more operating agreements, more state registrations, etc, need to manage cash better, need to keep in constant mind that your rents need to be a supportable FMV, which may require getting third party certification on your rents so that in the event of an IRS audit, what you have done is supported.In short...the size of the project, and the taxable income, need to be of enough scope to make all the additional costs and annoyances worth it. 

I don't begrudge people sneaking into our country to build a better life for themselves or their family, but I also don't want to support them or open myself up to risk.

@Ana Vhan - The IRS needs to see the same *taxpayer* on both sides of the exchange.If you file jointly, and your trust is disregarded, you should be able to take title in the name of the trust.Your tax professional can confirm, and your QI can support that decision.

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