Very difficult to identify 2% deals in areas where you can consistently collect rent with any kind of predictability. 

Even if you own a property in TX, you are conducting business in CA because you live here, collect the income here, etc.

I wrote about this extensively here and also made reports to the SEC and FBI.

Regardless of legal nuances, I can tell you from extensive professional experience: Don will WIN an IRS audit for his Subject-to interest, as long as he can show that he made the payments.

Yes, the onboarding process is extensive.

Rental collection seems easy.

Otherwise, I would sit on that property collect the cash flow and seek out great opporunities. 

They have failed to renew my entities with the Secretaries of State multiple times, have billed me wrong amounts, and GREATEST OF ALL, have cost my business ~$50K in cumulative TAX PENALTIES due to negligence in filing for a tax extension, failing to walk me through my tax filings and needed payments, and failing to file an abatement promptly.

Because instead of collecting one rent check per month, you’re collecting multiple payments from different tenants.

That is part of the problem with a lot of companies (I am not knocking insula as dont have all the info/facts just stating how the business works), they engage brokers to get them loans and the brokers collect a small fee. unfortunately many of the brokers may be similar to real estate wholesalers - have little to no experience.