Let me tell you that there are less risky ventures than what you proposed in investing in 2nd and third mortgages. With a host of people going under I definitely would not want to be stuck holding the 2nd or 3rd on a property that foreclosed when the music stopped.

Due your homework = due diligence. But find a discounted property. Purchase it with a legal protection (LLC in the USA). And make sure that your rent revenue can pay the:
mortgage
insurance
taxes
property management (I live 12,000 miles from my nearest property and have them all managed by various property managers. So do not tell me, “I don’t want someone calling me in the middle of the night about a broken toilet…” If I can do it anyone can.)
HOA- some neighborhoods have this added expense.
maintenance
Then you will be in the black and if you buy with a fixed rate mortgage (one of my cardinal rules of investing) then you will stay in the black.
This is a cash flow investment. Every month your bank account grows even after all the expenses. Later there is appreciation (because you can hold onto something that is generating revenue for you forever and sell when you deem fit for a price that suits you.)
So cash flow is not only at the bank with these horrible 2nd & 3rd mortgages. It’s no wonder you have taken a pass on real estate. But if you knew the inherent power in it you would put some of your money into it. 8 years ago I started with almost nothing. Today- putting some effort forward- I have been able to move our holdings close to 7 figures. This is with being in the market shopping only 2 weeks per year. If we were in the USA I would have easily made $2M. But do your homework and make sure. I like the phrase, “trust but verify.” It is very useful in all real estate purchases.

Happy hunting,
Todd
Ending the rat race