Is there typically an ROI?

I don't think the typical sub-to deal would lead to equity skimming because they are likely close to foreclosure and there isn't enough time to rent the unit back out and make money allowing the unit to go to foreclosure.

Expect rates to be higher than "typical" financing programs - right now, I'd plan for at least 8%+ depending on the whole scenario. 

Sometimes folks overlook how real prce apprecation can be impacted by having acreage that’s not typical in suburban areas.In Phoenix, where I’m based, a lot of us collaborate with local probate attorneys who know about hidden opportunities that never see the open market.

These properties typically do not have rent growth that keeps up with inflation.  

Most of our Members are baffled, typically saying: "How could they allow one of THEIR Tenants to be even ONE month behind?"

Business loans typically won't let you purchase a property if you read the fine print.

This is not uncommon and actual more typical as it is based on sales price and even though the first appraisal was $130k the new one gets reset based on its recent sale and home prices are not up 10% over a few months.You are going to have a hard time getting a lender to use other comps compared to this home as it recently sold.

It generally isn't worth the brain damage of experimenting though....especially if you want to move to a new home that you will own inside of the typical lender's seasoning period.

@Venka Pulla It’s frustrating when a property manager isn’t meeting expectations, but transitioning to a new property manager is typically straightforward if you follow a few steps:Review the Management Agreement: Carefully read your current Property Management Agreement (PMA) to understand the termination process, including any required notice period.