The challenge with rough neighborhoods is your Cap Ex and Repairs are actually higher.

@Dona CardenasI personally think actually owning physical real estate is the best way to go especially using leverage.  

The renovations his crew did were actually pretty good though. 

The modeling of this is actually pretty easy (see link: 42-unit proforma sample), but my model treats the pre-refi loan as I/O, but that can be updated based on your deal.

I doubt it was actually live.

I think the actual thought is to do a wrap INSTEAD of a sub to.  

Ask the candidate to share actual tax planning strategies they have used. 

It slows down the unethical operator.But it is rarely actually mortgage fraud, which is typically related to the paperwork filled out and documentation provided to originate the loan.Since someone buying on SubTo rarely signs paperwork with the original lender, he isn't telling the lender a lie and therefore making a claim of mortgage fraud against the buyer is difficult to make stick.

My husband actually did this when he became a realtor and the process was very simple.  

And plenty of people wholesale mls all the time and get deals it's actually quite common.