I find it odd that this isn't a more standardized practice.

Mortgages for LLCs with personal credit under 680 are tough and expensive, and under 640 are typically not really economically practical for the borrower. 

This is a practice by some less than reputable companies.

Office; AND$5M or more in revenueSEC regulated investment companies + certain business already under strict regulations from the Federal Gov'tWho is a "beneficial owner"?

Maintain good business practices an carry a decent insurance company.

There isn't a sustainability problem in Texas, it's a regulation problem.

There are thousands of pages on consumer protection laws and regulations that depending how you go about doing a subject to could be against these laws and regulations. so like most things - is itillegal - it depends.  

Otherwise, if it was investor owned (not owner occupied) and under rent regulations before you purchased it those rules would still apply.

If you control how they perform tasks, set their hours, or provide tools, they should likely be a W-2 employee, requiring you to withhold taxes and comply with payroll regulations.

Every passing year, this practice will get harder and harder, on average, across the country. - In the event that you do get a deal, that you do not violate the intent or letter of an increasing number of anti-wholesaling laws, and that you actually receive an assignment fee, you will walk away thinking that your role is over.