Maybe I am missing something, but what is the benefit to this arrangement?

It opens the doors to many options not available to most others.Having said that, I still personal believe that using leverage is one of the greatest benefits to RE investing and you are missing out on some of it.

It is similar to an IRA (which can be self directed) but has even better benefits in that you get a "top of the line" deduction on your taxes and the money pulled out is also tax free as in a ROTH.

I see (or at least I think I do) potential to reap financial benefits in this market.

`(II) LIABILITY FOR REPAYMENT- The mortgagor shall agree in writing that the mortgagor shall be liable to repay to the Federal Housing Administration any direct financial benefit achieved from the reduction of indebtedness on the existing mortgage or mortgages on the residence refinanced under this section derived from misrepresentations made in the certifications and documentation required under this subparagraph, subject to the discretion of the Secretary.

I don't know about other countries other than the US, but if you set up a LLC in the US you will get the tax benefits.

However you will qualify for all the benefits of a home owner.

I believe your are an employee with benefits, expense reimbusement, etc.

What the benefits or perks of section 8?

I would never go around her and go directly to another agent, what would be the benefit to me?