I’m a real estate investor and the owner of a fairly large property management firm here in Texas.

if i were to acquire these and have them be owner financed, I would want clear title and the other mortgage on this lot removed - especially if my loan has a balloon on it that matures prior to the existing loan, as how would to provide clear title?

This would be an owner-occupied property, so you will need to show the ability to repay.

For a long term investor:Would it make sense if you could buy the home at a steep discount and then let the owner stay rent free for a specific period of time?

Is STR insurance different from home owner insurance?

[2]   Do you know if the buyer is going to owner occupy or is it an intended rental?

No one is ever happy: owners, tenants, vendors.  

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.CCLBA has really cheap parcels for sale for owner occupants.

House hacking is using an owner occupant loan to get into a home or a 2-4 unit property.

If I remember correctly, there is a provision for properties with Fannie and Freddie loans to be moved to single-member LLCs after 12 months of seasoning if the only member of the LLC is the owner/borrower on the loan.