If you take a property sub-to, and the borrower dies, the lender is not informed of the death......unless you or someone else tells them.  

They mostly have small amounts to invest, starting at about 10 - 30k.After speaking with a mentor and someone I highly respect, I will at some point be using collateral assignments to basically borrow money from these individuals.

Borrowing from a HML isn't very different than borrowing from a bank. 

I would say this most first time buyer loans require borrower occupancy in the subject property as a condition of the loan.

They're something of a no-mans-land  between a lease/option (which is ultimate a lease with a tenant) and an owner carried mortgage (where you have a borrower). 

This link:  http://budgeting.thenest.com/remove-coborrower-usi...seems to suggest you can remove a co-borrower using an FHA streamline refi as long as the one borrower can qualify on their own.  

Some borrowers use FHA strategically and may put a large down payment for its other advantages such as 56.99% DTI backend, 2 year CH7BK, no time seasoning for shortsale in the past if borrower had no lates, qualify with foreclosure in 3 years or less, etc

Can you make contact with the borrower?  

Good Evening Mike,If you've been self employed for at least 2 years you can do a loan through Freddie Mac and they have a 1 yr tax return program for self employed borrowers. 

Its not considered income because its just money your borrowing and will be paying back someday.