As mentioned everyone's strategy is different, I'm risk adverse & enjoy liquidity.

This can get to 100% end financing in more expensive markets with smaller ARV discounts....though positive cashflow is a separate issue that must be overcome :)   Question: Is there anything in Freddie/Fannie rules that would prevent me from the scenario below?

It ain't over till the curvy lady sings :-)Sue,  prescriptive rights and adverse possession are very tough things to prove and take years.. and you normally have to pay the tax's on the disputed property which most don't do. for a title company to insure the boundary's he would have had to buy and ALTA policy and most just use a CLTA which does not provide for boundary accuracy.. 

Overcome.

And how can this objection be overcome for someone skeptical because of the delusional syndication deals that have taken place?

tend to believe everyone is motivated by money; people who are lifestyle motivated think everyone is motivated by the least amount of time expended; people who are risk adverse can’t believe other people are willing to “bet” on outcomes even when the odds are clearly in their favor. 80% of the time (IMO) people who make decisions we disagree with are not making stupid, ill informed decisions or being “tricked”; they just have motivation, needs and desires different that our own.  

I will do if there are red flags only if I know the way to overcome those. 

It can help you stay focused and productive, overcome challenges and build strong relationships.

“Force Majeure” means: hurricanes, floods, extreme weather, earthquakes, fires, or other acts of God, unusual transportation delays, wars, insurrections, civil unrest, or acts of terrorism, governmental actions and mandates, government shut downs, epidemics, or pandemics, which, by exercise of reasonable diligent effort, the non-performing party is unable in whole or in part to prevent or overcome.

The cash flow in these markets cannot overcome the return from appreciation.