@Tom ServerAdding it over existing subfloor will require you to undercut all your doors, and cause havoc throughout the unitYou should replace it as it’s mentioned.Depending on the square footage of the unit not sure if 5k will be enough and assume unit is completely empty of personal belongings and has no flooring in the unit over the subfloor

Then the person that wins that auction will do the “equity skimming”. . ps.

Personally, I would save up some more cash and wait for a time with better deals. 

Make sure you understand your personal financial situation.

I know the demand is there just don't hear too many personal stories from people that have actually done it. 

Talking to someone who knows about real estate in your area or a person who gives advice on money can help choose what's right for you.

Obtaining competent management was an issue, I have no confidence in the service personal in the local area.  

Personally, I'd never do it.

Think of it this way, your own personal credit is tied to your SSN and you can improve it by utilizing credit whether that is credit cards, loans from a bank, or mortgages. 

Also, I'm assuming I'll need to setup an LLC to keep my personal assets protected?