FYI - not legal advice.If it's not a formal assumption and it's a straight sub-to, typically the seller remain personally liable for the debt if the investor defaults.Essentially, what can the investor do better than the seller after refinancing the property? 

I can make way more money where I'm from. you have to branch out. most large pooled capital funds are raised in California and invest outside of California 

Insurance is now a big factor in the expenses of investment properties, even here in Reno, NV there are areas that have had large increases for single and multifamily properties.

Quote from @Dereck Olson: Hi Nicholas,  Just a thought from the possible tenant's perspective, but filling out a prequalification form and/or providing personal information before they have even seen a place and know if they will be interested in living in the property might be a bit too much to ask. 

I do a lot of searches for multi-families in Cleveland and Akron so Im looking at the MLS everyday on these and I think you can definitely get better cash flow in Cleveland, especially in the 120k price range. 

I'm willing to help this person in any way I can.

If you buy a very large (many bedroom house) the rent by the room also will cashflow.

Lending capacity should only matter to those with large borrowing needs and require large legal lending limits but that wouldn't apply to hard money lenders anyway.

Buying a large new build home can also work well as a house hack as you can charge a premium rent, and generally most bedrooms built now a days have en suites (at least in my market).  

Are you able to go there in person to build your network?