They have been booked up all summer for the last few years and they are clearing more than what you would make on the properties if they were a traditional rental in just 3-4 months.

Hello BP Community, Why is P&I / Debt service included in NOI and not factored into operation expenses when adding up GOI ? 

The idea being that if you just sign a sales contract that states "I will sell you my house in the next 30 days" it is unenforceable because there is no "consideration" cited in the contract making it unenforceable.

There are costs involved with writing mortgages.

What is the average rent- actual, signed leases, not Zillow or FB ads, for a product like yours?

Taking out the costs for now (lets assume that the finances all make sense, etc.), my question is really around process.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

You can't prove you're the owner, you can only prove you're doing arbitrage with a signed lease from the owner. 

They said they also do full repair after it’s all dry up.

When buying a house or refinancing, you will have closing costs.