So he wants a camera on his car for safety reasons and it just happens to get the other unit in the picture....

You typically don't want to do any renovations before the 2 years is up...just basic safety and securing the property.#4. 

@Naomi Spira  not real tough to prove these are not valid arms length leases.market price is double leases done 3 days before foreclosure sale slam dunk

In actuality, I think it poses a safety risk to the neighborhood.

I understand there’s some nuance state-to-state in terms of deed of trust usage vs. using a mortgage for the second lien position (our investor in this case).So that we can arm ourselves with the most knowledge going into discussions, could anyone advise what the setup process actually looks like here?

Instead, go with something like “I’m in the neighborhood handing out” as you extend your arm to give whatever it is to them.

Theyre just ARMs with a different name and a one year adjustment period.

A lot of accountants now say that it is perfectly fine as long as it is documented as an arms length business like transaction.  

This way they don’t have to uphold the properties or care for the health and safety of their tenants because they know people are desperate and likely won’t be able to afford a lawyer.

It's hard to say Russell, because we don't have an arms-length arrangement when the buyer is representing himself/herself as agent.