I'm trying to Figure out how to make this potential deal work.Seller wants to sell but not right away because they still use the house for some income. 

I instead look at it as a potential red flag.

Sellers may struggle to mentally shift from "owner" to "tenant," which can create challenges with boundaries and property care.Security Deposit:If you’re doing a temporary leaseback, be sure to collect a substantial security deposit to cover potential damages and ensure they vacate on time.

(If not, then you should, IMHO)We're all in sales ultimately, and keeping potential business associates on a marketing list is our lifeline.Also, if you were "politely told" that it's not a great fit - how is this a problem? 

It's a great property with tons of potential but it's missing the IT factor.

They tell you that they "cherry pick" potential clients, but belive it or not they don't!

Knowing that you're new in the forum and to avoid a potential reaction of the style "Who's this idiot who thinks he knows my country better than me?"

Are you currently working on lining up funding or looking at potential properties yet? 

Those are great areas with solid potential.

The market does offer lower priced investment opportunities and higher cashflow returns, with ongoing revitalization projects like the DORA boosting appreciation potential.