Rewey: So, if someone takes over a $375,000 mortgage using SubTo on a property worth $400,000 and turns around and sells the property for $405,000 on a Wrap mortgage with a Note of $405,000 (full value) to someone else, he now has paper, not a house. 

Can you lease an apt under USDA low income and have someone else live there???

I haven't actually closed a deal that far west or else I would be able to give more insight. 

I have asked where else are people finding deals like this and unfortunately I dint have any answers yet.. we shall see.

thank you for this, because locals always have the better pulse for the city than anyone else can or will. 

As far as lenders, if I don't get the numbers that I'm looking for, can I go with someone else even after they have done a lot of work like appraisals and surveys?

Off the cuff, $250 a push seems quite high and I'd look to find someone else if I were you.  

Someone else mentioned making her an occupant not a tenant.

Just messed up a really big deal I had and now i know they are brokers.

Use your superior knowledge, experience and analytical ability to spot something in a property being offered for sale that everyone else has missed.