For those of us fortunate not only to have a roof over our own head, but also to be able to provide that to others, I think we have a responsibility to recognize that gift, and give back to society. 

As long as you work with your attorney to recognize those limitations, it is one possible idea.

I would have to open an escrow account and withdraw funds from that account as rent revenue becomes recognized.  

In most cases, it's done without a permit as well, so typically the county does not recognize it as living space in the property which will definitely damage the per square foot value when you go to sell.

No one knows where the note is, or who holds it, so none of the 3 ways a lender could recognize the transfer are triggered.

Residents are blown away because it's totally out of the norm and it's nice to be recognized.

It's great to go to a local REIA meeting and someone recognize my name and say..."

Sometimes that can be hard to swallow when a customers got their hopes up on a deal and then our 2-3 independent local evaluators put the After Repair Value at a lower amount than what the customer was expecting.We recognize the value of local knowledge and that's exactly why we leverage the expertise of at least 2 independent individuals from the area to help us establish values.Again, just like Jay we've saved many a new investor from getting into a bad deal.  

Given to me free I would recognize first that this is a windfall. 

But, recognize that it's only risky when done the way the gurus suggest you do it.