I think there is a public mindset that purchasing and selling homes are compensated activities... but not so much for other alternative assets... a double standard. 

The way most people do subject to deals is by setting up a system of checks and balances providing some protection for both buyer and seller, and trying to avoid alerting the lender that a deed transfer has taken place.

So you cannot use that property as collateral for a loan. 2) Again, the house is not your name anymore so there are no depreciation benefits.3) From my understanding (and I'm not a tax guy so double check this with someone who is) is that your taxable income would be calculated based on the capital gains over and above your initial purchase/capital improvements and recaptured depreciation (for a SFR, the property, not land, depreciates 1/27.5th each year) but the amount you lend back would not be taxable until you receive that income.

I do full background, credit checks, job verification, etc.

What numbers am I looking at for monthly payments - Do I refinance to a standard commercial after the 6 month remodel?

If you're interested in cash flow, I would check out the Ohio market.

Thanks This is a case of check all your data points, do your due diligence and make sure the numbers and deals work good for you.

Our wide-open buy box and fast and loose acquisition model also meant we were not satisfied with buying and flipping standard, traditional properties.

I will check that out.

The funny thing is, all three sorta "knew" it had to be a scam so at least they had the common sense to check it out.