A platform really can not create liquidity.It's actually a pretty common feature of many of these types of funds.

I would say a common error that people make is underestimating the cost to fix or repair something.

If this is becoming common in certain areas, do you think it might deter a significant percentage of potential guests?

This is incredibly common in Philadelphia's market if you don't invest in the correct neighborhoods.  

This is more common that you might think.They do not take into consideration the costs borne by the investor associated with the transaction such as: closing costs, carrying costs, finance costs, exit costs, etc.They are trying to hit a homerun on every deal and not leaving enough "meat on the bone" for the next person. 

I've been experiencing lenders tighten there underwriting, and a 1.3X DSCR has been somewhat common in my experience.

The most common is to move in family or a rehab extensive enough that unit cannot be occupied.  

Hey everyone,I thought of this hypothetical scenario where I would do a seller-financed deal on a property valued at $250,000.

First, I would recommend calling around to apartments and other PM companies in your area to find out what is common. 

That being said, I scrapped the idea and bought another rental property.One hack to consider, a colleague of mine finished a third floor, made the third floor the living room and kitchen and the second floor the two bedrooms because that scenario avoided the need for a second means of egress.