For that reason alone I should've known better and suspected a scam.  

Now I think he may suspect me of relations with his gf. 

So when you can buy a place and not have to worry about Rent, consider yourself luck in NYC and I suspect, SF.All my properties, including the ones that I started out with Negative Cash Flows, are doing FANTASTIC.

We suspected it was the second-floor tenant or someone who lives in the same house.

It has both good and suspect areas.

Only debits are costs those paid by the lender are a credit  loan origination fees,processing fees underwriting fees would be closing costs if the buyer paid for them The lender recoups there costs as you suspected by a higher interest rate 

I have a question: has anyone come across a fraudulent seller trying to sell a property you suspect isn't technically theirs to sell?

I suspect that you will accelerate towards your goal quickly!

@Shiloh Lundahl  I will let the note experts chime in here but I suspect most note buyers are not going to do cash out refi's to you.. and if they do they will want a massive discount.but throw them up on FCI exchange there are all sorts of newbs that don't know any better and might bite.

I suspect the seller also had a hard time thats why a wholesaler even has a shot at this..