Yes, companies allow mortgage deductions from a savings account without issue. 

It was rather inexpensive, and we never had any issues with the tenants.

That resolves the issue 9 times out of 10.

Taking on issues the seller is not willing or able to cope with can score you a better deal.

look at Rural Japan its closer and much better tenants you can buy homes there for 40 to 60k that rent for 500 to 700. never a worry about tenant issues like your going to experience with C class US tenants.  800 sq ft is a very large home in Hong Kong if your not living with family and your maid in the same apartment What a coincidence!

https://natlawreview.com/article/texas-federal-court-issues-nationwide-injunction-against-enforcement-corporate

As to the quandary posed by the OP: The root of the issue is that it basically sucks to be an RE investor these days.

The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle.

Those can indicate poor management, deferred maintenance, difficult and expensive upkeep like ocean front which will bring up issues with rising oceans, insurance, and hurricanes. 

The only issue with seller finance and resale is if they don't want to receive a payoff in short order, then they should include a pre-payment penalty.