I’d guess if it makes sense, and won’t devalue your property, you’d want an attorney to draft an agreement identifying what they could and could not do.....I have no idea what to look out for, but the right attorney would.Just checked.....google has some interesting articles on it, seems pretty common.  

You are correct many lenders have pulled back from this product - especially in CA - as lenders are trying to insulate themselves from market devaluation that may be possible. 

However if it won’t devalue the property for any new tenants, that works for me.

The amount owed would of been covered in our original agreement instead because of the devaluation they wanted me to bring $28,538.42 Cash from Borrower at Closing AND perform a Fix N Flip on my Brick House thats 80% complete. 

I do not want to devalue anyone's experiences or considerations so I would say factor these items into your investment strategy as you see fit but it should not be a lingering consideration that prevents you from getting into the game. 

(Not sure if that is going to scare retail buyers and ultimately devalue the properties ARV??)

This company lies about everything and works with appraisers at appraisal management companies who devalue properties in neighborhoods where people of color reside.

Of course, you can always do a bunch of the renovation work yourself to save money, but every experienced investor here on BP will tell you NOT to devalue your time and invest if for free.If you educate yourself about the market, you'll find plenty of properties you can invest your money in and NOT end up being upside down.

Regardless, if you're looking to buy a house I'd exercise a little caution as it may take a little while for the market to price in any sort of devaluation as housing tends to be slower to react than the stock market.

I would also require the note be paid in full prior to any construction of any kind, any failed project can devalue my collateral if I have to bull doze some shanty or unfinished project!