So there are two issues here. 

The only issue is that I don't think I can qualify for the loan I would need to do that.

Did you live in it the 1 year or 2 for the capital gains issue?

How do you manage and monitor your projects from afar when things are starting to go left, especially when facing communication and progress issues with contractors?

As you noted in your original post if the loan was signed on or before June of 2016, there is no issue. 

I really would like to know if you have ever had to litigate the issue or know of a case, you're relying on for your understanding of how the law would be applied?

Establish objective, non-discriminatory screening criteria, treat all applicants the same and you will have no issue.

It typically comes down to a lack of clear communication between my team and them.

There are so many forum posts from OOS investors, especially in California, who rush into something in the midwest and then get crushed by capex - a foundation issue, a roof, etc.$100K is a lot to put into a random property in the midwest... and, as is a feature of real estate, the nicer the property you buy, the less you're going to cash flow.Hope this gives you some things to think about

So this is why this strategy is coming up so much one because of why you want to do it taking over low interest loans and when markets start to have issues and owners have financial issues.the KEY is finding sub too ANY EQUITY a lot of folks doing sub too will over pay just to land the mortgage to me thats not a good bizz model every deal we did could be flipped day one for a nice profit. other wise we passed.