Relying on general ideas is dangerous when it comes to taxes.Read this older thread to see why this area is far more complicated than you might think: https://www.biggerpockets.com/...

This strategy's success is predicated on a potentially exaggerated appraisal, which has dangers; a low evaluation could result in a bigger mortgage than expected.

But before you rush your decision, you need to realize one critical distinction: treating this transaction as a business allows you to deduct all business expenses against this income.

But the reality may be that the tenant hasn't paid in two months, or pays 20 days late every month, or their dog is destroying the carpet, etc.There are literally hundreds of threads explaining the dangers of buying a property with existing renters.

And Sub-To is simply the single DUMBEST most DANGEROUS way to transact property BAR-NONE!

Earlier this year the company threatened to cancel several policies due to older buildings, potential flooding and fire danger.

Yes, literal #, it's actually 3.7 seconds, that's the "Bounce" danger zone.

But the distinction is that single source funding is what is illegal and that transactional funding is legal. 

Found out that ozone machines are dangerous during and even after use - read epa report.

@Jennifer Roof, do you think this is a flip that is in danger of failing?