There are a lot of different avenues that you can take to make this work.

Plus basements always need extensive renovation to make them work for maximum revenue as they're usually one big open space.  

I have significant enough assets and capital that I can make a few loans while still maintaining a healthy stock portfolio to keep my money working for me. 

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

Their ability to recover their money should you default is much lower in this position.

If you leverage it by borrowing are you making any $?

However, that was a fluke.Warranty companies are in the business of making money.

Meanwhile, bank money market paying 7.5%. 

@Dallas Morioka why use your own money when you can do seller financing. 

Quote from @Jed Butikofer: Unfortunately, it takes money to make money.With high prices and high mortgage rates, cash flow is difficult to find and we may not see a return to the 2018 market for a while.