Besides losing money from your registration fee and tax certificate fee (assuming they pay before the 14% interest period), are there any other downsides or other ways to lose money that new investors to the process should be aware of?

Hi Jeff Beard, thanks for the reply.Whilst this is true, the lease has a 3 month notice period for termination by either party.

Or should i refinance after the period of seasoning into a conventional mortgage?

An investor will buy more houses, probably many more in that period of time and the houses don't have to be "pretty".

There is no redemption period for the homeowner.

If you have a master-meter, you own the water/sewer lines and will have periodic maintenance.  

Silicon Valley has been a hotbed...and will continue to be...until tech looses some of its secondary funding from outside the U.S. that will incur a cooling period.  

Most banks require a settling period before you could refinance and take the equity out.  

I wouldn't expect appreciation in that time period. 

Michigan has a 6 month redemption period if occupied or 1 month if vacant.What are your personal thoughts with investing in this strategy?