What we're struggling to understand is how to underwrite/estimate the paper losses that a MF would produce and IF this strategy is worth it from an income/tax savings perspective.

It can be quite intriguing and interesting to hear of many of these returns and great on paper assessments, but the reality is, they rarley pan out in real life. 

I find newer investors over-using acronyms when they don't even know they mean - ROI, COC, BRRRR, etc.The most glaring old school vs. new school knowledge term that I think people should look to hear, not say, is holding paper.

Those are the neighborhoods that cash flow on paper, but don't in reality.  

During the mortgage crisis i worked as a loan officer for a very short period , in that time frame i saw how shady that part of the business was, customers where signing documents blind and for that very reason most lost their homes, everyone was taking full advantage of the situation and trying to get a wealthy as fast as possible before the party was over.What i dont like working with loan brokers/officers is that there is a lot of jargon in their paper work that they only understand , i wouldnt want to get stuck in bad mortgage deal .

After operating 1 rental for 2 years and another for just a few months, I just got notification from the code enforcement at my municipality (whom I had visited in person) that I didn't file a paper correctly and fines are possible.

The last time I went through tenant applications it was a paper/pencil situation.

***You'd want to make it worthwhile to foreclose and also be safe***If someone is an A Paper borrower just needing to close fast, some of my investors will go 75 LTV.You can also always feel more comfortable on a purchase rather than a refi, as people are bringing skin into the game, not trying to exit.

It just requires more paper work with the city.

Sure, in theory, the strategy this investor used might sound clever, but it’s also incredibly risky to rely solely on the compliance of a borrower—especially when they might not fully understand the terms or simply can't agree due to their personal situation.I have tons of ideas that might look good on paper, but I don’t pursue them because I assess the real risks involved.