For residents we meet through FF.com or ones from an STR site that want to extend, we offer the ability to do so using leases created by avail.co . 

You have no ability to make improvements to increase the value (and benefit as the owner); you can't deduct mortgage interest on your taxes as you don't hold the mortgage; and you can't own it while the value rises over time.

I have done this a few times myself and have a few basic recommendations:1) Make sure the seller owns the property free and clear and that it's very clear to both parties whether the arrangement involves a deed of trust or contract for deed2) If a balloon payment is involved, be sure to assess your ability to refinance and make that balloon payment in the future- optional extensions can help manage this risk3) Understand the tax implications if the interest rate is notably above or below market rates4) Get title insurance! 

I can risk assess every individual based on their background, It is screening 101.Thankfully other peoples moral outrage does not interfere with my ability to successfully operate a minimum risk business within the boundaries of the law.Bottom line is laws are never ridged. 

Using co-hosts might help distribute management tasks, but this can complicate your ability to meet the material participation requirements, especially the 100-hour rule.

Philly always had the ability to become a great city; but the people who are elected just hurt the hand that feeds it. 

Without the ability to obtain a loan / financing - the next steps will be harder to accomplish

Receiving rent while starting the rehab doesn't affect the ability to deduct these expenses, but you cannot deduct them all at once.

I haven't been able to secure the SBA funding on my own so I questions his ability to do so.My question is whether or not this is normal. 

Low down payment is a significant part of your criteria, Michael, and it obviously fits your personal needs, wants, financial position, goals….But for myself, for instance, ability to pay a low dp is of absolutely no importance.