There's a difference, and that difference is how they benchmark cost of funds and interest rate risk from a balance sheet capital perspective. 

I think if we know what you want to achieve we can reverse engineer your ideal "path"@Justin Kane makes a really good point on the scalability of the larger MF game. 

. - Lenders are not balance sheet lenders.

See below for the numbers:Home Market Value: ~525kLoan Balance: ~476kEquity: ~50kMortgage Payment: $2570Rent Price: $2650Property Manager: 10% (potentially 7% w/military discount from a referral I got)Cashflow: $-185/month, $-2,220/yr1st year Equity Payoff from tenant: $11,561It's a 4 bed, 3.5 bath home built in 2011 that only requires some new paint to be rent ready.

Could easily pay off entire loan balance or inject a large amount of equity in order to refinance and still make the deal work.- Puts material equity into the deal, in the form of cash. - 750+ credit score- Pays legal fee for seller to have representation from lawyer to walk them through the terms of the subject-to deal, including making it very clear that there are extremely real, and potentially devastating risks in the event of buyer default.Irresponsible/unethical Sub-to buyer looks like this:- Poor/no credit - Would not qualify for the mortgage they are taking over payments for, much less a new mortgage if a forced refinance event happens.- Is attempting to get 100 subject-to deals, but is not even capitalized to pay off or inject enough equity to refinance a single one of the acquired deals to have it qualify for refinance, much less a few dozen of them. 

With careful planning and prudent management, you can achieve your investment goals and build significant wealth through real estate.Best of luck, and keep us updated on your journey!

Everyone has to balance their own risk / reward preferences.)I would continue to follow real estate, follow the conversations in the forums, save money, watch for opportunities (there are always diamonds in the rough that are out there - you just have to find them), and work to move yourself to the best position to be able to be an investor.  

Think about the policies and communications around the classic boy/girl friend and unauthorized person lease terms and procedures (from on-boarding through screening and lease signing).....But if it is really too stressful, look at your scale (is duplex or ten-plex right for you and your work/life balance), your market (the neighborhood --working class or upper class), your team (like a good eviction lawyer or contractor) and see if it is a good fit...

Mine are 5% of loan balance if prepaid within 1 year, 3% within 2 years, 1% within 3 years. 

I think we can achieve the goal of a family-friendly community and having a house that I can get paid for by using a co-op method.