This destroys the credit of the original owner who can then sue the subto buyer.Another issue is if the subto seller claims they were taken advantage of by the subto buyer at a vulnerable time (pre-foreclosure) and an attorney or regulator raises the question of equity skimming.

Foundations and framing were built better 100 years ago and there are some advantages to older homes.   

The “buyer beware” philosophy is fine for commercial transactions, but taking “advantage” of home owners when they’re most vulnerable and lack market sophistication is something no right thinking person wants.  

PPP not taken advantage of.

What's the advantage here? 

This opportunity doesn’t occur frequently but it takes these attributes to take advantage when they do.3 - Blind luck - do enough deals, the unique opportunity tends to present itself.  

If you don’t collect rent, they will keep taking advantage of you as long as you let them. 

The advantage of Reg D over relying on the general exemption is (1) if you comply the SEC can’t come back and say you should have registered and (2) if your sued by a disgruntled investor you have a definitive defense, which means an attorney is unlikely to take an investors case on a contingency basis - unless fraud was committed.  

For further context, we are trying to have him be the name on the loan because he would be able to utilize his first time home buyer loan to take advantage of the lowered offered interest rate.

You risk being taken advantage of by many people.