The major drawbacks to me were the loss of depreciation as well as any other losses wouldn't be able to offset gains from my other traditional rental properties.

I don't like that but after I settle on a purchase price, I can factor in a more traditional reserve amount per unit per month.Regarding the location; I will say you are right.

I am interested in finding ways around traditional financing methods and how i get the financing on a new property with little money down. 

Typically, if people don't want to list on MLS during a seller's market, it means either the property is not likely to qualify for traditional financing, which could work in your favor, or they want more than the property is actually worth and can't find an agent to agree on a listing price, which could be a major barrier- you might try to see if you can find this info out.

Traditional HARP loans were for GSE loans originated prior to May, 2009 and Fannie/Freddie loans were subject to conforming limits so, it wasn't a HARP loan if there was a refi in 2017 and for that amount although, if the loan balance was ten times lower?

The house isn't going anywhere, so handle the IRS and get them out of your life, then move forward with a traditional loan.

One of the best ways to get started is by using a 203K or rehab loan... this will allow you to get in the property with 3.5% down and you can even finance the rehab.Interest rates are a bit higher than traditional FHA loans but the 3rd "R" stands for REFINANCE so you'll only be holding that loan for a short time.I'd speak to a local lender, broker, and investor for more info.Aside from attending local meet-ups, don't hesitate to reach out to people personally via private message or on forum posts...

-- Of course I realize that we could make much, much more $ by keeping the propert(ies) and renting them out long term to tenants (and we have other properties that are, and will be rented out the traditional way), but we have a heart for entrepreneurs and RE investors and really want to help some young person be successful who otherwise might not have that opportunity.

Hi Tom, I wouldn't say you are dead in the water, and without seeing your tax returns I can only speculate, but a few notes before you assume that you can't get a traditional mortgage... 

If it was a traditional bank then maybe they would be more open to discussion if you were to leave a large amount of your safety net sitting in an account at their bank for a certain time as a "hedge" against your possible failure while also giving them room to lend more to others (because of the $ they have on deposit)?