The trustee, borrower or bank can ensure you get your hand slapped hard for approaching the circumstance as a work-out or foreclosure fix it guy without a license or being an attorney.Let's say that we can approach the owner and be in compliance, which you can.You will not purchase a note as an individual investor from a bank that has started foreclosure by making an offer like that.You get a request from the borrower for the bank to sell the note in lieu of payoff as demanded.

While I agree the rent by the room strategy can be great if you know how to manage it well, from a lending perspective, a lot of 30 year DSCR note buyers won't allow properties with individual room leases, so it could make refinancing more challenging. 

I wouldn't say impossible as any individual can loan you money at the end of the day as a private lender, but most lenders won't even go to 0% with experience.

This metric does not work, if trust falls out of place, and faith falls from the team and rests then on individual greed.

Any individual would be out their real estate.

These homes tend to individually appreciate over time and are actually not bad places to live.The places with the lot rent you have to decide if you want to be in the mobile home business and buy the park.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

That's also not a deterrent to REI...and it never was, and never will be.The real key comes down to analyzing markets, and not just individual properties. 

The goal is to expand my network with likeminded individuals in the same market.   

Choose non-judicial foreclose states with pro-business laws like Texas and Georgia.I have several high worth individuals who fund rental RE in GA earning 7-8% APY on 5 to 10 year terms.