Higher interest rates have made it difficult for buyers to secure loans, while sellers are hesitant to part ways with their fixed-rate mortgages.

This is advanced rent and is treated similar to a security deposit.

My plan is to hold onto it as a rental property, targeting Section 8 tenants, as the rental income is quite attractive at nearly $1,500 per month.Here's the challenge: The property's purchase price and labor is below $40,000, and I'm uncertain about my ability to secure a traditional mortgage for a property at this price point.

I'd recommend nothing shorter than 5 years.Regarding your specific questions:1) Yes, any competent closing agent (title company or attorney, depending on your state) can prepare the note and security instrument (security deed, mortgage, etc.) you need.2) See 1.

This is helpful is you want each property to have a different account and have separate account(s) for security deposits. 

If you are unable to do that, you can still Brrr an Airbnb as long as your income will carry the DTI needed to secure the loan.

Unless you are looking to go hard money you will not secure financing for a vacation home with 5-10% down.

Jamari's local market knowledge was crucial in securing the property for $165,000.

The security deposit can't be too much so I would advice give it back to avoid a larger long drawn out issue. 

You will want to sign a short term lease agreement and get proper deposits for them such as last month and security.