If you think of it, all of our society is full of scam and hypocrisy.

I'm currently researching the market, trying to get an understanding as to where these different areas are located in the cities.Any indication is welcome!

I would pick a major tourist destination where it wasn't saturated with STR's already.That would take some research but you could google top vacation destinations and find a place you would go on vacation.

You have no more at risk than you do in your own home (where you probably have more equity.) or your own car (where you probably have more risk.) and we won’t talk about if you have a pool or a dog. 

You didn't mention where you are operating, but depending on average home prices, I think you'll be ok.For instance if we're talkin $500k homes, and if you will get a 2.5% commission, split that 50/50 with your Broker, you will end up with $6,250 per sale, right?

Then there’s fraud or misrepresentation, where borrowers inflate project values or provide false documentation.

The solution is for people to find places where their wages permit them to buy or rent a decent place to live.

I'd argue that there are very select zip codes where this strategy works.

Purchased property for 390K, put 15K into rehab. Home now worth 550+. Would like to sell and capture gained equity, also cash flow is not great and the house needs more work. Long-term renters want to buy at 550 as is...

Curious where you pulled the information from?