There are some platforms that are really good for equity such as CrowdStreet and Realcrowd, and then there are others that are really good for debt, such as PeerStreet., Fund that Flip, etc. 

What I would like to do is find a list of people who are late on mortgage payments and plan on foreclosing their house or selling to make the payment and contact them and offer a 'subject-to' option to basically absorb their debt and rent out the place until a possible refinance in the future to buy more places.

As with any and all legal matters, you should consult a local attorney for advice on this issue.

@Cherrell Thomas cash flow is the profit that's left after debt service, property taxes, property management, common utilities (if any), reserves for repairs (small things like leaky faucets, AC servicing, etc), and capital expenditures or capEx (larger things like a new roof,new HVAC, major plumbing overhaul...these are treated differently on taxes, written off over a specified longer period) and other expenses.The first item I mentioned, debt service, is where the answer to your question is.

I told him I don’t plan to file if he can be out within eight days howeve, I had to give him the papers to start the legal process.

In the future (not sure how long in future for your Silicon Valley place to legally be considered a rental from a 1031 perspective), you can do a 1031 exchange to buy a new rental property.

If you did decide to take the GC to court it would take years to get your money back plus legal fees.

Here's what I set aside per unit:Taxes:  ~ $100 per monthTurnover expense:  3.5% GSRWater/Sewer/Trash: $30-$45 per monthMaintenance: 12%Cap Ex: 2.5%Overhead: 1%Insurance: ~$25/mo.Debt service (100% leveraged): $350-$400EVERYTHING ABOVE is increased by 10% to account for vacancyAll told, each unit still cash flows between $100 and $200 per month.These are B-/C+ small MF properties.Note I do not pay for management as I self-manage, but that is offset by the increased debt service created by the 100% leverage. 

The very best advice I can give you, being a lawyer myself, is that YOU SHOULD NEVER ASK OR GET LEGAL ADVICE ON BP. 

My partner and I have been looking at multifamily properties, and I was wondering if there are any legal issues with renting out rooms instead of units and also renting out finished basements in CT or NYC?