So, title is passed "subject to" the liens being released by the lien holder.Generally, the grantor uses a Special Warranty Deed to convey title, warranting title just with a General Warranty Deed excepting out warranty as to the lien remaining.Such transaction violate the alienation clause in a mortgage, no real gray area about it as it's defined in federal law.

Assuming one is in a 30% combined Federal and CA tax bracket, you're looking at $9,600/year tax refunds, your carrying cost is equivalent to $2,800/month after mortgage interest deduction.

That was six years ago Mark, and lasted for 90 days, and had nothing to do with Obama or the Federal Government.

And even if the securities laws are taken care of you have a rat nest of state and federal regulations to comply with.

Its against federal guidelines however

My tenant was previously depositing her rent ($1800/month) into my Pentagon Federal Credit Union account.

With the huge surge of interest in real estate investing by new and experienced investors, the return of home buyers to market and the resulting rise in prices I was curious to see what the community thought were today’s underutilized strategies and areas (cities, towns, states even blocks) that could be interesting in the next 6 months and are not yet popular enough to be something most people know about and are thus using thereby driving up prices as well as reducing supply. 

There are also issues with Federal liens.

Downside is...if someone, somewhere DOES decide to audit your income/expeditures and find you only make $10,000/yr part-time but put $20,000 down on a piece of real-estate with no evidence that additional funds came from anywhere else...then you're looking at federal fraud charges.

There are Federal laws that you need to research as well.