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.

Most postal carriers have enough common sense to recognize which box is for unit A and which is for unit B.

Future steps will be getting engineering plans done for the road and utility work, a concept plan for the subdivision and getting it all approved from P and Z and town council again.I know I am missing steps in here but I wanted to type out a scenario so I can come back with questions when I hit some road blocks.

It’s a very common misconception.