Those that cannot be sold and land that have a lot of tax and fees attached and unpaid are promoted on the website, Government Auction, for auction. 

We purchased with a conventional loan, 10% down payment:Purchase Price: $405,000Closing/Fees/Misc: $12,500Repairs: $85,000ARV: $575,000I was hoping for rates to come down some in the next year and refinance out with a 75-80% LTV.

They would cash his checks (even huge ones like $20k) for a small fee, and he would take the cash and pay his guys.

I think it only makes sense to switch if your current lender is not meeting your expectations, and the rate/fees are significantly different.

Try and do it all and have all these other companies as affiliates that charge fees but the main note company is the one who pays3.

On the renewal for the license, I asked if the loft was considered a bedroom and the response I got (unsurprising when it comes to taxes & fees!)

I have bought notes based on bank saving time legal fees and property damage during the foreclosure process, if you were buying residential paper I would look at the foreclosure timing first if it is like Wisconsin you can get the banks attention if it a very fast moving process like I am told florida is note purchass can be difficult

They charge a $10K fee and their monthly management fee is 10%.

The headache of playing peacemaker between 3-5 unrelated tenants doesn't sound worth the premium management fee; not to mention rent by room generally brings in lower quality tenants which require significant more management.With that said, higher rates are pushing investors toward rent by room simply because it's the only option for cash flow (at least in Denver) which is why I have so many folks reaching out.If you currently have rent by room investments or perhaps you're a PM currently offering rent by room, I'd love to hear your feedback and any advice you may have. 

NonQM "shops" offer a variety of loan types, DSCR being one but they are the lower rates and fees.