The impact of not having F/f financing is large (>10%) if the appraiser recognizes this potential issue.  

By house hacking, you're immediately positioned as a landlord, which will adequately pressure you to learn how to structure your leases, screen applications, collect rental payments, resolve the nuances of managing tenants and addressing property issues, etc.

We hardly ever get a call or text about any issues.

A quitclaim deed is a straightforward way to transfer ownership, but it doesn’t address tax issues.

The issue was a person sold their home subject 2 and the person who bought it stopped paying.

The Fannie and Freddie programs handle this issue slightly differently.

I’m going to disagree with @Chris Seveney and say whether an assignee could force a sale directly would be a state law issue and heavily dependent upon the contract terms. 

The issue we are running into is that lenders are not recognizing the excess amount he earns as income, therefore it looks like he will not be able to afford any loans that he would be approved for.

As an investor - if I was putting $125k down I would want title in my name and a clear title policy - so that is where I would have the issue. 

Risks include market fluctuations, property damage, tenant issues, and unexpected expenses.