If you really strike out start your own BP meet up.

I would strike that as well.

Way to capitalize on the IO payments and then strike when the IO period was over! 

That would be your STRIKE price so start at 10% below that(which you already had in mind at a $174k purchase) and make sure you do your best on educating the seller about why seller financing would be beneficial to him. he would ultimately get way more for the property. his capitol gains is spread out over 20 years or whatever you negotiate and worse case scenario if you do default he keeps your deposit and gets the properties back via foreclosure.

If disaster strikes and you have to make major repairs you wont have the option of lowering your payment if you're locked in at 15 yr.

If someone expects to buy a home anywhere and not have a babysitter watch it for him/her, disaster will strike!

You could ask a family friend if they would be interested in Striking up a deal, but anybody looking for a return on their money is going to shy away from owner occupant partnerships. he might be able to find somebody who would buy the house for you and then owner finance it to you.

He also strikes me as the kind of individual who genuinely enjoys being miserable.

Conversely, as a newbie individual out of state investor - triple strike - looking at markets like the Midwest, you won't have the reputation or credentials to get very far with brokers or sellers.

(Lightning strikes, other weather, accident damage to sign structure, gun shots to panels..)