I know you guys are probably right but the thought of owning a $500k+ house free and clear in about 3 years then getting $2700 a month sounds enticing. 

I understand a rehab/remodel project carries a far greater risk, but aren't your returns going to be much more enticing?

I found a couple of enticing auctions, in particular a duplex and a sfh, both of which are (according to the website) occupied.Both are incredibly cheap for their market, and assuming they are occupied they are at least liveable.

You get a useful space that won't have a ton of upkeep and will be enticing for future tenants.

You need something "to take" that he values to entice him to work hard to pay you or you get whatever backs up the promissory note. 

Tax Free and Tax deferred sounds very enticing.  

Or other strategies to entice possible sellers?

It allows me to look like a cash buyer so I can close much faster and make more enticing offers.

Often times that can entice them to go with the full owner financing because they feel that getting their price is the best deal.

(Gross Profit of $65,000 per flip sounds enticing - But, and it's a BIG BUTT, Here is what they don't tell you: The average NET Profit is $15,000 (according to NAR).