Each has benefits and downsides. 

Is there any downside to the seller?  

The biggest lesson I learned was once you determine the market you want to invest you need to build your Team.

The downside is this isn't terribly granular so it can be misleading.

The downside is that borrowers would be required to pay the mortgage on the full cash out amount from loan inception, the benefit would be that the actual interest rate could be closer to the 7%'s than the 10-11-12%'s (also with an interest only repayment option) and the need for a new mortgage (second loan on the target acquisition) could be eliminated if the equity position on the refinance is large enough.

My biggest complaints are similar to yours:1. 5-7 days or more from the time the tenant pays the rent until the cash hits my account. 

That increases my monthly cash flow and it boosts the value of the property to increase my equity.The downside is that it can take a lot of work, time, money, and patience. 

Your biggest risk is kids commandeering the thing while mom and dad are in the hot tub,and running over and killing someone(s).  

That's your biggest hurdle.2) Of that remaining 100, on 95 of them the appraisal is going to find some reason to kill it.

When dealing with legal matters, the biggest mistake folks make is not listening to the attorney.It sounds like you’re out of town.