If paid by the lender (this is common for conventional financing, especially with retail lenders), the origination and/or underwriting fee is “baked” into the interest rate, therefore giving you a higher rate in exchange for lower out of pocket costs. 

Even still, investors will often want equity in the projects.Giving equity to private investors can hedge your bet.

My bet is both those will be redeemed prior to auction.  

Out of state may be your best bet, everyone on this thread has suggested great markets.

In Metro Detroit area, police will not remove these types of occupants (they are afraid of scamming landlord having police remove legal tenants), calling them a "civil matter" forcing landlord to start court eviction process. thats a good question Drew.. but I bet if the police are aloud just a little bit of fact checking and do police work they can determine the fraud very quickly.. 

Many real estate professionals pay little to no taxes by using these strategies in combination with 1031 exchanges, creating a snowball effect of tax-deferred wealth.

Details here: https://www.biggerpockets.com/forums/521/topics/1214849-dmv-...I recommend checking them all out initially, I bet you'll have a lot of fun networking!

@Olga Nadal Fortunately, there is no penalty for an incomplete exchange.

If the real estate is producing a steady return, you can make more aggressive bets with stocks or other alt assets.

Bet you know who that is don't ya Carlos?