It may or may not show on a credit report, depends on the servicing and you should have the loan serviced.Failure to include the debt on a future loan application is mortgage fraud, wanna go to jail?

If the loan is being paid the seller/previous owner has no reason to want off of the loan.

The other route you can look into is purchase+rehab loans if it's going to be a primary, if it's an investment then using hard money, bridge loan, or DSCR.

In many countries foreign investors buying rentals can't get loans or loans at all. 

The good news is you don't need a specialty loan for a house hack, just a traditional primary home loan.

We were trying to buy a loan that was in default and the current lender was emotionally attached and has it listed for over $2M when comps are $1.5M. 

I answered a question yesterday by saying "DSCR loans are like belly buttons...everybody's got one."

If the loan was fully funded at closing and since then the loan is in an interest-only payment period, these numbers would equal. 

So you are talking about a loan of $200K.

You can easily cancel a listing, the property can sit for months because of market conditions and unrealistic expectations, buyer can fall out because of a bad loan or issues with the property.