Since I'm taking such a cash hit, I asked the sellers agent if they would be able to designate some portion of the sale price ($200k?)

If my crystal ball is correct, we are going to see a lot of these sub2 deals hit the fan in the next 36 months. 

Really your reply is the kind of thing that has made Bigger Pockets so valuable for people like me with more limited access to a broad range of more experienced professionals.

In the “old” days, people would have the seller pay the lender so as to not “alert” the lender that a property sale had taken place, so that the lender def wouldn’t trigger the so called “due on sale” that’s a part of almost every mortgage or deed of trust document.  

I really feel this is helping people find affordable rentals.  

One example would be the office sector being hit hard with defaults.

Just like you can't hit homeruns on every deal, sometimes your better off taking some lesser deals in there too just to grow. 

The focus for these groups of people too many times is always on defer defer defer…..

Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit.

As an investment this is a great hit.