This includes getting comps or an appraisal to verify value, lenders title insurance,  a proper note and mortgage,  and you must be listed as a mortgagee on the borrowers property insurance policy.Our lending criteria in our lending business caps our loans at 65% of the after repair value and we control all rehab funds as we hold them in escrow. 

However, I'm totally making up numbers and I would talk with a lender to verify this information and get more specifics. 

-The rehab has it's own liability policy that I believe will add me as a named insured (I need to verify this.)

This is what I was thinking needed to be done already so it's nice to have someone else verify that I'm on the right path (for the most part).

I recommend you check with an authoritative party to verify if you can or can not execute your wholesale deal in the manner you described legally.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

On a final note, please verify that there is a demand for this unique investment approach in your market.

Does the Owner verify information on estoppel certificate or does your property manager or Realtor?

You want to verify that these tenants are ones you'd actually want to keep—do they pay on time?

Whom am I to believe, you, a professional in the business for 10+ years with a verifiable track record of success and a willingness to provide information based on your experience and education at no charge, or my guru who has never run a note business and has been banned from the securities industry for life for violations related to stock dumping 6 years ago?