IMO you would be way better off with a commercial loan than buying these sub-to with his inferior mortgage.

Your PM fees will also be less per unit for a multi unit vs single family.Tenants in multi unit buildings share walls so there is always the potential for noise complaints and neighbors that simply can't get along with each other.If you run into financial difficulties, it is much easier to sell off one or two SFRs than it is to sell one big multi unit.Traditional lending is much easier right now for SFRs vs multi units.  

@Brandon WorkmanIf you are looking to BRRR or Flip, perhaps a HELOC would be a good option if you can pull that off.

I am assuming that is not in a judicial foreclosure state that has to be auctioned off and gives the homeowner time to sell it.

Many properties have seen drop offs from their 2021-2022 peak, but that should be somewhat expected?

This is still a VERY common trend here with homes going off market after an open house (about 3-5 days into it). 

@Hal Thompson No, it doesn't cool off the mtg Foreclosures at all.  

First off, well done taking care of your folks.

Just want to figure out if agency debt is based off of the agency or the lender specific spread.

They can also stay until the end of the lease term and receive nothing for leaving.You chose to skim the entire topic and spout off twice about your own faulty assumptions.