I can only think of reasons not to: capital gains tax, loan interest rate less than the property’s cash flow, risk… The only way I could make it work would be to identify a buyer I know will default.

Also factor in if you will be refinancing and rolling any costs back into the loan if you're looking at ROI.  

I also say that because as the property appreciates you can always refinance the loan to gain more cash flow or cash out etc..Rarely have I seen investors hold their loan for the full term.

I'd purchase a second home and fulfill the loan requirement for stays etc.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

She reinstated the loan in less than two weeks and we sold it after a minor rehab.  

FHA loan How did you add value to the deal?

Do you or someone you know do these loans ? 

Thus, when the loan comes due, the property could easily be worth less than the loan amount, leaving the owner with very few options, none of them good.  

I may not have enough to win a court case but I have emails of him needing certain documents like the BK balance and loan number which I found before it was too late and saved the deal because I knew it was public record Quote from @Marcus Auerbach: This sounds like a real dumpster fire.