This is gambling, you're trying to score big, and that always comes with risks.If he was a paying tenant this would be a lot simpler, but not necessarily in your favor.  

Vegas is no longer the world gambling mecca.

They are able to bid more at sale because their investors (using mostly IRA money) are thrilled to make $10-15K on a $120K investment.

(There are many other ways to pierce the veil) General partnerships never have protection from liability, in fact if a general partner makes a very bad deal and signs a mortgage for a million dollars then loses it all gambling all the other partners are equally liable for the mortgage even though they never received a penny of the proceeds.

It's always a gamble when giving an upfront fee.

The upkeep of the yard was a major headache for him and he was thrilled to see it go.Hopefully this is the case in your area.

People who bought into a deal where rent is $100 more than their PITI payment are really put into a bind when ANYTHING bad happens.This is no different than gambling.

THAT is way more difficult.And for those people who are snooty about buying a $35k house, I would say there are many investors who would be thrilled to be able to buy a house!

I just placed the house back in market unfurnished today and have the leads that I usually have when I list a property in this area but darn it, I was thrilled with renting it furnished with my asking price! 

In my opinion, NO.The purpose of the insurance policy is a safety net and protection for those who are beneficiaries.If the need for money is this great, the investment consideration is far too risky and you are gambling with your future and the future of the benefaciaries.