While I don’t know your personal financial situation, I can tell you that a certain amount of capital is necessary even if one were to pull off an IMPROBABLE very highly leveraged purchase.  

***You'd want to make it worthwhile to foreclose and also be safe***If someone is an A Paper borrower just needing to close fast, some of my investors will go 75 LTV.You can also always feel more comfortable on a purchase rather than a refi, as people are bringing skin into the game, not trying to exit.That's an interesting perspective, especially regarding the different LTV thresholds based on the borrower's situation.

What would you recommend as the best strategy for accounting for this situation as we file taxes for the 2023 tax year.

Don't be discouraged if there is a lot of push back from sellers or agents at first, many of them aren't familiar with seller finance deals or have situations that can't be solved with seller financing (for example, as was mentioned above, they may need a more conventional offer to pay off their house and buy another one).

Situated near the new Amazon warehouse and major freeways, the location offers easy access and convenience for tenants.

They do this day in day out and typically will have come across the same situation that you're in. i.e. radiator, summer is hot, old house, what to install for summer coolin? 

This sounds like a different situation than a "BRRRR" strategy refinance question - however, this article published here on BP last year goes through a lot of the different refinance options on the market for investment properties.https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

You would need to consult with a lawyer to set the trust up and ensure the best protection for your situation, and then relay that information to your tax professional. 

Have a specific situation in my life.

This situation can make maintaining a rental unit a long-term problem due to lost rent.Or suppose an old building decreasing in value is becoming a money pit.