There are many reasons why I haven't pursued the arbitrage model, but mainly that it takes too long for the ROI after investing all your time and effort into buying furniture and renting and paying utilities.Let's say you rent an apartment for $1500 and you spend $7000 to furnished it.

I once heard that all arguments happen for one of the two reasons: either we call the same thing two different names, or we call two different things the same name.

Quote from @Dan Mcguire: One reason not to invest, is not to lose money.

The PM owns the listing, and for several important reasons. 

Of the dozens of MFR I have closed on over the years none have been in Newark, the reason for this is it is not worth the headache. 

Reporting the proceeds you pay to seller on a 1099 sounds reasonable.

Only reason is I know I’ll get it back and I don’t need it right now because I’m living with my parents.

Not the intention, just being very direct here: I am not going to show those numbers for 2 reasons.1) if I did ( and I would blow you away if I did), it would only cause people to misunderstand what I am trying to teach and 2) I don't have to show you or anyone anything.

Personally, I wouldn't offer SubTo or a Wrap, For reasons I've written about fairly extensively. https://www.biggerpockets.com/forums/70/topics/1227199-the-m...However, I would sell on "Lease Option" and that may work for you.

This guide will break down the key reasons to explore this market and how you can navigate it effectively.What Are Distressed Properties?