Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

No reason to spend $1000-$1200 on a typical 1031 QIMathew 

Jason, or WHOEVER you really are (your BP page gives absolutely NO information about you - typical for those “keyboard warriors” who spend their time trying to “get even” for the bullying they endured during childhood)Your tactics are reprehensible, reminiscent of Wisconsin Senator JOE MCCARTHY.  

Here is a fundamental flaw to Sub2, that this situation seems to exemplify. 

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

You typically need to be in the $400-450k range to see those rents.

In these instances typically the lender will pay it to protect their interests. 

A cash out loan would have 6+ months typically and if it is a traditional loan it would be 12 months.A DSCR loan will not work for what you are trying to do.

Next step is typically to file the action at the courthouse, like you said. 

I have seen a lot of folks that typically BRRRR pivot to flipping for the time being.