Actually, the way you describe SubTo can be called "equity skimming".

Same thing with any investor you get in bed with.With time you can work some equity into those rentals and when interest rates come down you will be in a better spot to sell a couple SFHs.   

Hi Warren,  I've only heard positive reviews about M&M but have not personally used them.  

The store sales are very strong may sound like positive but not until you answer the following questions:When was the store built?

And I'd add talk to local investors for positive and negative feedback, someone who is not trying to sell you anything. 

Whether rates hold steady or decline, those who position themselves early—by securing financing, analyzing local markets, and identifying motivated sellers—will have the best opportunities.Final ThoughtsThis week’s CPI and jobless claims data will set the tone for mortgage rates heading into the second quarter.

Like Devin said, double digit rates and you could still have fees similar to a first position mortgage.

If so, this serves as a great example of how much the market has changed - if someone were to buy this property in 2025, it would have significant negative cash flow, whereas you have positive cash flow given the price point of purchase in 2021.  

Assuming the leases clearly state a security deposit amount, the seller knows that the tenant will be wanting a refund when the lease ends (after closing) so should be an easy reminder that you need those funds credited to you at closing from them to refund to the tenant when needed.If the seller spent the tenants deposit, at least the credit to you at closing comes out of the sales proceeds (seller just nets that much less at closing) and assuming they have sufficient equity should not be a big deal.  

My ownership is 1/18 (6.5%) and equity is about $900k.