But especially in ODC's case as they have so much going on and have grown so quickly that who's in charge of what exactly isn't always clear and systems/quality control not always well established.

I would also target COA’s with newly replaced roofs, and negotiate to have the seller pay any outstanding special assessments at closing.

Given the low price point I would be hesitant on keeping the property depending on the quality of the area...Keep the best, flip the rest.If its a solid location, I'd consider keeping. 

The key features that make it more efficient that are hard to replicate else where is that the interest is simple interest similar to commercial loans (rate/365Xbalance daily), there’s a 20 day grace period before the prior period’s accrued interest is billed/added to your balance outstanding so you can keep chipping away at your daily principal balance with your deposits from days 1-19th each month before prior month’s interest is even billed (on the 20th/21st usually).The current CMT or constant maturity treasury index is less volatile than prime index that most heloc’s are based on (most bank commercial lines are based on 3-5 year FHLB + 225-275 BPS or 2.25-2.75% margin).

Buyer is behind on mortgage.Home is worth 254k.Mortgage is 186k.Very little equity there.No liens or other outstanding incumbrances.Would this call for a novation situation?

While proximity to developing scenes and amenities suggests upward potential, the nearby "war-zone" area could raise significant concerns regarding safety, tenant quality, and property value stability.

And it's not as cheap as many think, especially in quality areas.

One day I plan on operating in a similar fashion in providing a seamless experience with quality products.

The freedom and time are to increase the quality of our life.

Just keep in mind this is a typically one and done type of financing as it requires owner occupancy.Neighborhood quality is crucial and cannot be overstated.