,You're right that I did not mention many details but my example was to illustrate what's possible, not to lay out and exact business plan with all elements spelled out.On the HML side, let's assume 12% interest and 3 points.

Excited to interact and learn!

Right there in my first interaction I realized their company did actually care about people as well as making profits for their investors.

You need to do that before you consider having any interaction with perspective applicants.

You either have properties that attract the wrong tenants (which no PM company can fix), poor tenant screening and interaction (which a good PM can fix), or a ridiculously bad string of luck (unlikely, since you generally make your own luck). 

Few quick pros and cons off the top of my head, having bought seconds for a few years.Pros: - cheaper to get into (you can get high quality ones for 10-20k)- safety through diversification (you can buy more notes with the same money and spread your risk that way)- generally much higher returns (we've had a lot of notes with 100%+ returns and recently got one with 1,000%+ return)- typically don't have to deal with taxes, HOAs, and as with all notes don't have to deal much with physical propertyCons:- Less inventory available, with rising prices and more competition- Lots of underwater inventory so you often run the risk of a) getting wiped b) having note sit in the drawer for a few years- Have to deal with scum-of-the-earth bankruptcy attorneys- Requires much more interaction with the borrower, since foreclosure is rarely the optimal play- Fixed costs are killer on 2nds (ie 1 foreclosure on a 50k first is a ton cheaper than 5 foreclosures on 5 10k notes, so is servicing etc)There are a ton of pros and cons to both, and both are great.

This is regarding a 13 unit building in Illinois that went condo in 1979. The building has 12 above ground units and a single garden unit. In the 1979 condo declarations the garden unit is listed as a 1 bedroom with a...

But I'm probably too conservative, too paranoid, etc. so there's a element of risk/reward.All of that said, with a $199K asking price there are plenty of people who could just pony up the cash and buy it straight out.  

It's incredibly frustrating for us, because sometimes we need more detail than the automated service provides, and the Human Resources people (ironically) don't want to interact as humans.The good news for you is that your local lender is probably already signed up for most, or all, such services.

The key element is that regardless of which city they are in, they are both going to be familiar with the VA Residential Landlord Tenant Act.