Hey Jake, You're definitely heading in the right direction!

First though, I am not an attorney and this is not legal advice.In my opinion, what you are describing is illegal and I always would suggest to stay away of skirting any laws/rules.

Kayla - At Stevo mentioned you definitely have some options.

Yes they are legal.

That's the part I was trying to avoid, especially as an out of state investor.Still, I appreciate your reply, definitely something to consider. 

Second, definitely get YOUR lawyer to draw up the note/mortgage and any other needed docs, so that you are able to foreclose on the property if there's nonpayment.   

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

For the record, it is perfectly legal to sell zero rights under a quit claim deed.

I agree with everyone above, you can definitely do the bookkeeping yourself at this point within excel.