The “buyer beware” philosophy is fine for commercial transactions, but taking “advantage” of home owners when they’re most vulnerable and lack market sophistication is something no right thinking person wants.  

This destroys the credit of the original owner who can then sue the subto buyer.Another issue is if the subto seller claims they were taken advantage of by the subto buyer at a vulnerable time (pre-foreclosure) and an attorney or regulator raises the question of equity skimming.

You are asking me to extinguish any leverage I have and left vulnerable for anyone to steal the deal from under me". 

If not, paying off the STR could leave you vulnerable to unexpected expenses or downturns.

You are more vulnerable than ever to make a dumb investment.

https://www.forbes.com/sites/amydobson/2019/09/12/these-10-cities-will-be-the-most-vulnerable-when-the-recession-hits/#355288432aa1@Ryan SwanCan you explain the high tenant demand?

A sprinkler system isn't going to prevent a cabin from going up in flames if the trees around them are on fire. 

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

His videos use rented props to make it look like he's some guru but he is bottom-barrel scum who preys on the vulnerability and ignorance of people.

Burdened with a vulnerable and helpless feeling, I agreed to accept ABC Baltimore’s reduced offer of $95k and closed the buy—back with ABC (we still had to pay closing costs).