The assignment assigns the Mortgage to youThe allonge transfers the note to youAs for due diligence :Are the notes Dodd Frank CompliantHow much are you investing relative to the current unpaid balance (UPB0How much are you investing relative to the current Value of the propertyAre there unpaid taxes on the propertyAre there any unpaid liens on the propertyAre the borrowers currentHave the loans been professionally serviced so you know the pay history and the correct UPBDo the borrowers pay on timehow long have the buyers been in the property, do they pay on timeAre taxes and insurance escrowedIs there insurance naming the lender is there a lenders title policy

I am not planning to buy a 100 homes a year, just to methodically buy (cash) and sell houses using equity and my savings.     

@Peter Moser @James Myers Have either of you tried this method?

How do I find a licensed mortgage originator to write the note correctly? 

If these deals were single families I would do a reno in a heart beat because the "BRRRR" method works well with the equity game.

I usually use 8.33 (1 month in twelve) as a benchmark when analysing a property.Given your numbers, I am also presuming that the tenants pay their own heat/utilities (save water).This will give you and operating ratio between 43.5% and 49% (which may still be light, but could be correct if tenants are carrying their own utilities)This will leave you with NOI between $3200 and $2900/mth.  

I can also walk away with no loss if he doesnt accept to bring it down, correct?

I would like for the community to be able to identify me as a lender and find me in the correct places.   

Thomas S (can’t tag you on the phone)This is not correct, although apparently becoming a more common misconception.

If the numbers were correct it seems like a great way to get into 5 rentals at one time and have the blessing of easy logistics for property management and such.