If the borrower wants out of the home and to avoid foreclosure and further damage to their credit, we provide alternatives that will allow them to do that and give us possession of the house.

I'm buying it from another investor who started writing about it in his BP blog but I won't share those details until it's officially in my possession. 

I don't want to be in possession of a stolen firearm.

I live in NJ and am frustrated and tired of looking at properties in the local investing model.

Being a lawyer doesn't give you some magical purview of every legal field so I question their ability to discuss the legality of it in the first place.In regards to the tenants: If they've paid a deposit but haven't responded to your requests to transfer keys and pay first month's rent, then you haven't transferred possession of the property yet.

go hardcore and try adverse possession (not serious, this probably won't work).

Electric and natural gas service may not be discontinued while you are in possession of your unit.

I realize this model doesn't scale very well beyond more than a few houses at a time, and only a handful per year, but at this point in my life, I'm ok with that. 

When you do those interest calculations, you neglect that the 10 year note model costs you $72,000 over 10 years in potential cash flow (very simply multiplying current monthly loss times the number of payments, I understand that this is overly simplistic).

Your liability could potentially run into hundreds of thousands if contamination is found after you take possession.