Is it a valid strategy to invest in performing first position underwater notes (where the borrower owes more than the home is worth)?

Quote from @Barbara Johannsen: Hey BP Community 👋I’m a note investor looking to acquire non-performing residential mortgage notes (1st position preferred).

Just had my first performing note pay off early, and I have to say… this strategy is underrated.No tenants, no repairs — just monthly income and a clean exit when the borrower sold the property.

Hey all – curious to get your perspective on this.
We’ve consistently outperformed the market in Mammoth Lakes, CA for the past few years. Good photos, Guest Favorite on Airbnb, Superhost, strong reviews, fast respon...

Many suggest to have a higher debt-income threshold for them (5x or higher), since they will essentially be financially responsible for two households.Also have them sign a "performance guarantee" and make a deposit. 

→ Are you focusing more on performing or non-performing notes?

👋I’ve been spending time analyzing the current state of the non-performing note (NPL) market and noticing that inventory feels tighter than usual lately.

This is ideal exposure because your listing will be in front of people who already value Airbnb data and performance metrics.

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The more expensive the property the worse it’s performs as a rental.