Recommending a transaction that knowingly violates the due on sale clause in the mortgage/deed of trust can be lead to you being named in a lawsuit should the transaction go south.That being said, there are various safeguards that significantly lessen the chance of problems occurring (not all problems relate to the mortgagee accelerating the note; there are problems when the seller attempts to obtain credit and the subject mortgage note is in his name, problems when the buyer offers a financial statement showing the subject property as an asset and (correctly) list the mortgage as not personal liability; numerous potential problems if and when the buyer wants to sell without paying off the existing loan.  

@Rea CooperI have STR’s in different gentrifying communities, BUT there are Numerous Encouraging Trends in the communities I choose.

That is why they are attracted to this strategy... and this is the GREATEST DANGER.For these reasons, I think BRRRR is a dangerous gamble for those who are most enticed by it. 

That can be you getting on numerous local wholesaler lists.

@Collin DeWese - SW Florida is a really hot market and we have been doing numerous projects for investors and homeowners alike.  

I'd seek out a mentor on BP that's actively participating in syndications.As you have capital, there are numerous ways you can invest it and get the benefits from real estate: Direct Private LendingTransactional LendingInvesting in NotesLending to a Hard Money LenderBuy-and-hold (Residential, Commercial, Etc)BRRRR (This is flipping and buy and hold combined with a refinance)The wealth is derived from passive income, which is why I'm not mentioning flipping or wholesaling.

Things have been going well, and  I have been exploring how to ramp up.  10 years from now, I'd love to have passive income from numerous rental properties.

Definitely many legal issues at play here, but I'll give my side of the story before starting this process to see what you guys think (besides the fact that I'm incredibly stupid & naive for breaking numerous rules against renting to friends, co-workers, etc.)....- A new [at that time] co-worker heard about an unoccupied house I was essentially using for storage purposes only, then tells me he'll pay me to rent it out. 

@Jacob Elliott Depending on numerous factors such as: neighborhood, price/sqft, risk tolerance, cash flow versus appreciation desirability, and more, this will determine the amount of money you will need to bring to the table.

Do your due diligence and overestimate your expenses and underestimate your rents in some cases so you are confident the asset will perform through numerous market cycles.https://learn.roofstock.com/bl...