So, essentially the money from the ultimate buyer can NOT be used by the intermediate buyer to close on their purchase since that would be using money from a purchase that can not occur until the prior purchase has been completed.  

Here are some options: Hard Money Loans: These are short-term loans typically used for the purchase and renovation of properties.

There are a lot of books on note investing, which is essentially what you're talking about.

Typically they come available through maximum income requirements.

But properties typically end up in the repository list for a reason.

Is it a typical inn/bed and breakfast setup with all the rooms inside of a main house? 

Essentially you are creating future tax free income by being able to roll over these losses.If your income is between $100,000 and $150,000, a portion of that $150 loss is deductible and the rest rolls forward.If your income is less than $100,000, your loss is fully deductible - and THAT's the cool thing about rental income. 

One of the best times to implement value add is when there is turnover so that is typically when the owners hear from us.

Renting out the property for less than 180 days in the first year is typically one of those conditions, as you've mentioned.

I think this is just typical discourse for owning property though.