Also, the homes are being sold to institutional buyers.

Here's my scenario:Rising interest rates make profits in real estate less lucrative than other equities for institutional investors. 

If his credit capacity is sufficient, and his experience sufficient, he may be able to obtain a loan from institutional sources to compliment whatever capital he’s personally able and willing to contribute.  

And with that, a panic in tenancy side as there is an arguably even larger supply shortage on tenancy side than ownership, driving prices up and with that, driving up investor interest (speaking on institutional investor side of things) thus driving more purchasing and unit demand. 

Hard money lenders, and private institution lender/businesses will only loan 70% of arv including the rehab cost, with experience. 

Assuming you finance it with traditional institutional financing, you could get 7.125% with a 75% loan-to-value (25% down payment / $250k).

Zelle can work but you need to put something in place to make sure the flow of cash is recorded with your banking institution.

@Justin PhillipsAre you willing to share what institution you structured this with?

If someone tries to institute a law suit for any reason, you will be better protected on privately owned assets.  

That is why I offer one of the every few funds available for non-institutional investors to take advantage of these markets.