@Rich Hupper FHA mortgage fraud carries a maximum 30 year prison sentence and $1 million fine.

How you choose to invest can match your own personal risk profile. 

The right section 8 voucher holders will adhere to your rules, or risk losing their voucher.

The reason I want to do that is so I can get my feet wet without taking on as much risk.

If the lender wanted to sell their loan, they would have to take a loss because of this defect.There are lots of schemes and ideas on how to avoid or minimize the risk that a lender (especially, the big banks) will follow through with calling a loan due because of violation of a "due on sale" clause.

Even if you are successful, lawsuits take time and if you are waiting for the money to finish the project the carry cost will eat you up.

If her portion of the rent will increase you may be at risk.

Ventless because I am afraid of dryer fire due to tenant not cleaning lint.Having a washer hookup in NYC apartment is priceless as it really sucks going in rain, snow etc and waiting at the laundromat and carrying the large load back.Thanks again for your time. 

Either way, the risk of you losing is highly likely.

While I have extreme fears about providing income, her fears are on the risks of having additional liabilities.