It does not matter if they have house-hacked or not.Milwaukee has more duplxes than any other city in the US (including our friends in Chicago) and by default we sell a lot of dupxes, so I could probably write a book about house hacking, but the best advice I can give you is stop looking at listings and start interviewing agents.

Most of these companies are fraudulent (not saying they are) and take advantage of those in distressIf you are behind on your mortgage speak to your mortgage company - we buy defaulted debt and nothing good comes out of ignoring or avoiding the conversation.

Most quiet title actions are won by default judgement due to the lien holders failure to respond or disclaiming their interest after being served the notice.

This is a good resource:https://www.alexandriava.gov/sites/default/files/2023-12/202......and this is the Tenants Rights information and form you have to provide to the tenant and have them sign. 

As mentioned if the holding company is not solely holding or owning assets together funneling monies as a loan would further complicate if there is a default but also cause you to file extra tax returns = $...Yes you are taxed on interest income or any money that you make, does not matter how you structure it, what comes into play is not how much your taxed but how much you pay someone to figure out for you how much you need to pay and each layer is an added cost. 

Of course, you could also gamble that the tenant won't show up in court and you get a default judgment.

Our default is to spend money on quality materials.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Assume the borrower defaults, then what? 

There is still $300B of defaulted mortgages out there and $13T of mortgages overall - so just like real estate - lots of options and opportunity for those who will do the work