There are forms of "illegal flipping" which involve selling a property on CD to someone with a large down payment and a poor ability to pay. 

Lenders that sell their loans today are also taking part in what they call CMBS 2.0 (post 2007 underwriting criteria, where it is very common to see certain terms and conditions implemented for the additional security of the bondholders, and the increased risk of the Borrower (you)).The one thing that I see over and over – even with some of the biggest players in the market, is this: Investors spend a lot of time and attention on the due diligence of the property, economics affecting property performance, property management, repositioning, and on closing the loan - - and NOT AS MUCH ATTENTION IS USED TO PREPARE FOR THIS ENTRY INTO THE FINANCIAL MARKETS, (WHERE THEY WILL BE RESIDING FOR UP TO TEN YEARS) AND HOW IT CAN ADVERSELY AFFECT THEIR RETURNS.

I still haven't decided if I want the cash parked in the market or not, possibly a CD since I know I won't be using it for at least a year and it will get a slightly better return than a savings.. 

I am sure you will also hear from investors and investment providers who have experience with various players.

Such properties can be profitable, but it takes a special set of skills to manage the situations that will come up and potentially destroy your cash flow and/or the property.The strategy does not so much matter, rather than having a good team in place such as a very involved property manager with experience in class C/D properties. 

It's lucrative for the real players and devastating for the dabblers.

There are immense differences between successfully building and running a B-class turnkey buy-and-hold rental portfolio out of state and doing the same with a C/D-class high-cash-flow/low-appreciation low-income rental portfolio in your own area.

But in C-D ( is there a D?

I haven't driven by any of the properties, but based on their age and location (C/D neighborhoods), I'm expecting there's some deferred maintenance and other needed repairs.

Dangerous some as many don't understand it's not comparable to say the APY on the basic CD.