Owner makes the payment to his bank and keeps the difference between your payment and what they pay, plus at the end of the 5 year or 10 years their net sales price will be higher because of the interest they collected over the years.

I agree with the analysis above, but I just want to add that if the rental was illegal, as someone above has suggested, then you will be unable to collect any arrears that are owed.

Both on the upkeep of the property and collecting rent.

Or, if you wanted to get crazy, buy properties in each of the first 5 years, and then 1031 up into bigger properties as you have enough equity and really start collecting cash flow!

Basically, you are just collecting unenforceable expressions of interest.  

If your tenant doesn't have any money, it will likely cost you more to try to collect than you will ever get back.

In other words, how will you actually collect money or otherwise force the seller to fix the problem?

I have a lot of information to collect.

People who currently pay ~$1,700 -2,000/month on rent can get into a multifamily property and pay almost half that amount for mortgage after collecting rental income from their tenants.

I collect rent monthly electronically and I have a part time maintenance man who handles the maintenance.