There were options that would have made better investments, but the lifestyle this enabled fit perfectly.

For those who feel comfortable living with roommates or who want to get into real estate investment gradually, house hacking SFR is an excellent alternative since it enables you to start small and live in one unit while renting out the others.

It enables me to share with folks.When you help someone do better than they think they could have, you win a friend for life.Dan Butler.

Depending on the value of the property it may eventually be sold on a tax deed but in the meantime, I believe title would simply remain in their estates or in the last to die's estate.I doubt you'd be able to find a legitimate charitable org to accept a deed from you and your sister without being able to get a title policy otherwise they'll have to job of clearing the title and will still need your assistance. 

Independent or "separable" economic interest - basically, is the refinance for a legitimate purpose other than avoiding taxes. 2. 

Legitimate lenders are ok with this.This is a clear scam @Justin Smith.

@Indrani PeytonRun away- no legitimate lender would give someone a $400k loan on $27k a year

There are also more legitimate examples commonly referred to as mezzanine debt.

Some scammers actually have enabled their victims (tenants who call about the fake rental ads) to move into the home by breaking in and changing the locks, while the owner/seller is unaware because they aren't checking on the property.

@Nicholas Devlin I have yet to find any legitimate lenders willing to do DSCR loans that small.