He will pay sales commission but get his BHA back and have lived for rent free. 

No 'press 1 to talk to our sales team, press 2 to...' sort of thing. 

Please no sales pitches.

He can spend the next few years-ish getting a finance degree through an online school while working part time, but he just got offered a full time position helping with sales for a local wholesale real estate company. 

However, once converted to personal use, you can no longer claim depreciation, and the accumulated depreciation will reduce your adjusted basis, increasing your potential taxable gain upon sale.

The positives are from the buyers prospective1- the ability to buy a property with little down payment2- the ability to obtain financing at below market rate3 -not needing to qualify for convention/institutional financing4- not having another debt on your PFS5 - not needing to pay points and other fees to obtain a new mortgage The positives for the seller are 1- can possibly sell a property in which they have negative equity without bringing cash to the closing table2 -expand the pool of potential buyers 3 -possibly obtain a higher price/ quicker sale 4 - can utilize a wrap to potentially earn the “differential” on interest rate 5 -May be able to save the Realtors commissionAll this being established, here’s the BIG question:  Can a subject to transaction be done where both parties are reasonably protected?  

I’m not suggesting you shouldn’t consider this opportunity because my current company has about 50 homes throughout New England with about 1100 employees and is well funded.

Hey Nicholas, I’m an investor and realtor based in Indianapolis, and I’d love to help you explore opportunities here.

Net earnings were about $400,000/year, so the business component of the sale was valued at about 3X, or $1.2M. 

It will depend on where you are doing your deals and what the liability is that follows you after a sale.