That scenario of what you are proposing is so outside of the realm of anything even remotely plausible that it would be best to just forget about it.That said, if a borrower is in default, and approaches a loan officer (why they would approach a loan officer instead of a realtor, is beyond me) and tells that loan officer they are in default, and that loan officer happens to know an investor that might happen to be in the market for a purchase of the defaulted borrower's property, and the numbers work out to where the transaction can go forward and everyone wins, and introduces that defaulted borrower to that investor, it would be great.

Simply, there's not a ton of deals here that I'd be able to get a loan for (mostly based on my income rather than down payment) and the ones that I can afford/qualify for are generally in neighborhoods I wouldn't feel comfortable living in. 

We just went under contract on a house in Henrico county a month ago or so and had to bid $5k over list with cash to win.

The person doing it for me will not be making any money off this transaction and will simply be doing this as a personal favor to me, and I just wanted to clarify the tax ramifications, if any, for both of us. 

So again, sell as yourself, sell as himself, buy as a disregarded LLC - this technically does not change the taxpayer and would be permissable for 1031 purposes.I always counsel you to make the deeds match as closely as possible simply because it avoids questions and fluke situations with inexperienced field agents in an audit. 

So there's simply no comparison. 

For example, in Warren Buffet's most recent shareholder call, he explained that decades ago when he started investing($115), if he would've invested simply into an S&P500 index, it'd be worth $600,000 today.

Im not worried about the retirement fund related risks.Or, I can simply pay the 6k loan, and pay 5% down and the bigger PMI. 

You can still win in real estate, you may just have to switch up your play.

However, zoning dept said just simply sign 1 lease w all of them so all their names are on one single lease as roommates and that solves it all.