This process absolutely has flaws, to name a few:1. it doesn't scale at all2. it only works in certain geographic markets3. it usually only works on cash flow houses leaving you out of appreciation gains (the real money maker in RE)4. it ONLY works when buying distressed properties.

Lo and behold, we've been told that Fannie Mae does not allow seller-financing, so we're back to the negotiating table unless one of you can correct some flawed assumptions!

It’s flawed thinking to assume that, because it’s close to a city and it’s low, it’ll go up (at least not in any term that will benefit you). 

Or get a Real Estate agent to take a look - they absolutely love to point out every flaw in a home...LOL. 

Not all, but very many of the deals being done are fundamentally flawed and will lose money, in which case you are trading losses of real dollars on a RE deal for savings on taxes.Be very careful to underwrite this appropriately.

If this realtor is begrudgingly taking your offers to other agents and/or not comfortable pushing your agenda, then you have to cut it off or accept that you're ideas are flawed.

In our market it's about $40 for uncovered lot parking. 

However, their process may have some flaws.

This business, especially when you're starting, can really wear you and your family down.This is my second attempt to get through to you on some things it's obvious to me you haven't considered, or else you wouldn't be considering such a clearly flawed, low-probability-of-success investment plan. 20K is just not enough for any sort of realistic down payment AND reserve you'll need to go into this.

One flaw to this is contractors are not keen on working with investors and you will have a hard time continuing this pattern for each property you are “considering”.