I think telling people the truth probably cuts into profits and enthusiasm for “Dear Leader”: (That’s a “cult” term)Since the Subject To purchaser makes the mortgage payments and owns the property, the IRS deems that sufficient enough to take the deduction, per my recent IRS audit which includes a large portfolio of Subject Tos and various other creatively financed properties.

Note that conventional loans allow 5% down for multi-families now...It sounds like even with your father's help, you still don't have sufficient funds, much less also having additional reserves...What, may I ask, is your job? 

Best of all is that there is no self sufficiency requirement.

@Sarah Hall if you want to add properties, more leverage is probably the answer, but I would go for quality over quantity.

This is sufficient in our view.

just email and text is sufficient if they know each other.

Your basic insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

While most of the posts here are true, we need to step back and look at it a DIFFERENT way…The people (wanna be investors) we’re talking about are people trying to go for the American Dream of self sufficiency, independence, and financial success.  

Another unintended consequence would be a plaintiff attorney is trying to decide whether you have sufficient assets for him to pursue a lawsuit.  

.$100,000 - $300,000 is standard and sufficient but talk to your insurance agent and they will help you get clear.