He did emphasize that Greenfield is a small town where everyone know everyone and they are set in their ways.

Another option may be a credit union or small local bank that would consider doing it as a portfolio loan, but the rate and term may not be as good as conventional 30 year fixed.

I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

Lots of friends (owning competing businesses) had to go through Bankruptcy recently due to the small market shift that occurred, just bought at the peak and were too hopeful in the market continuing upward.

People may act like they are for small govt out there,  but their actions are about as far from that as you can possibly get. 

I want to replace it with a small 2 bedroom 800 sq ft house.

Plus, living in the property gives you the unique advantage of understanding it inside and out.. making you a better landlord when you eventually rent out all the units.If I were you, I’d prioritize properties with room for rent increases or small upgrades that could boost value.

I was thinking it would be nice to start a small network group and possibly exchange some deals!

As the legally required small print in the offering of financial products reads: "Past performance is no guarantee of future performance".

Starting small with solid fundamentals and not waiting for the "perfect" deal was key to getting started.