You have made a number of assumptions that may simply not be true.

With these deals you have to risk some capital and thats where I find the average investor especially here on BP that is very much rental ( IE has to cash flow day one ) simply will not entertain these deals.. you also have to be willing to walk from 50k or 100k if it turns against you..  

His 40-plus years in real estate speaks for itself, and his unquestionable devotion to providing his expertise, advice, and thoughts here on BP have earned him a level of respect on this site that you apparently are unaware of.He will not condemn anyone simply based off a black and white forum.  

Or did you simply mention it because you're already familiar with that one? 

That means there is not really an effect on the debt to income ratio neither positive (income) or negative (loss) but rather simply making that payment  non issue. 

In my experience that either means there is something prohibitive in the zoning, or there simply is not much demand for that sort of product if most people either go with an apartment in a large complex or rent a SFR.

Private Money is simply money from a non-institutional source...such as someone lending out of their personal IRA or from their savings. 

There is a lot of variability in this answer and, like all things in real estate, it simply depends. 

Being a subject matter expert, not because you are forcing it, but because you simply ARE, shows through, and investors are rightfully attracted to that. 

Has anybody found a workaround for this or would the seller simply have to hold the note long-term without the option of selling it?