I was told they paid on time, $650 a month, and were on government aid so the money flow was reliable.  

I understand the hesitation from the first bank on this sector of homes as the expenses and turn over are generally very high.

Trying to buy a house by using OPM.

All altruistic rhetoric aside.My understanding is there are a lot of people living in the area who wouldn't "Screen" in a very positive manner juxtaposed with a lot of people who also live there who would "Screen" in a very positive manner, and not a whole lot in between.The local government probably doesn't want the "Screen Failures" to move out of it's district and somewhere else where screening is less.Because these "Lower Screening" areas do exist. 

Someone made the same argument before the Supreme Court and lost in April....https://www.supremecourt.gov/d...My understanding is if the loan was sold to Fannie or Freddie, when they were taken in to receivership by the federal government the state’s super lien law no longer applied.

My strategy for looking for cities out of state, which is the same strategy that I use finding cities in state, is to find cities where there is a strong and growing job sector (medical/tech).

I am also in the same boat and working couple of offers (made 1 and about to make another 1)  .. below is what we have did the underwriting 1) Loan product : HUD 223F /120 days to close OR Agency Loan from Fannie /Freddie (55 days to close) 2) Underwriting: Given the town population /local job sector, higher vacancy rate , in addition to  Opex /Capex allocation we added a one time capex to set the baseline, assumed 90% purchase price as tax rate (100% if your is a disclosure state), management cost, utilities .. 3) We also added 1% point on fully burdened CAP rate to derisk smaller population 4) We didnt increase rent .. kept AS IS .. 

LLC's are governed by the State they are in (mine does), and protections are afforded by that State. 

If you are still working for the federal  government,  are under 59 1/2 , and contributing to the TSP this could be considered a withdrawal which would be taxable and incur early withdrawal penalties. 

There will be some digital marketing involved to bring traffic to a website designed to capture the leads.I know there are regulations governing marketing for investment opportunities, but this seems like a little bit of a grey area.