In OR and WA, they require 2 years of full-time supervision by a principal broker.

On January 1, 2011, she evicts her tenants and moves into the house, thereby converting it to her principal residence.

You are also aggressively paying down principal on the property, so you are gaining equity.

pays off $800/month principal and 300 month CF (I manage myself and this doesn't include ANY repairs). 

A bigger down payment can lower the amount of the principal and interest being paid, so that DSCR can be met more readily - but that might not make that rental more attractive to an investor who is looking to have as little into the property as possible.

If you hold for that long and get a Fannie/Freddie loan or better yet a HUD loan, think of the principal that you could pay down and the depreciation.

The next loan payment will put $325 towards the principal. 

If you set up the loan as interest only, the principal won't change. 

Here's the biggest needs & what most people are looking for generally speaking:1) Deals2) Private $3) Sponsors/Key principals to go on a loan4) Help underwriting5) Help with research, making phone calls, administrative tasks, etc.So that said- like @Todd Dexheimer mentioned, what is your skill set?  

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10.