But damned if I can find anything online about landlords using it!

Might be a diamond on the rough if you can fix it up and then long-term rent.

Seller wants $160,000 cash out which leaves $50,000 in equity for the buyer.I had a taker from CA but he couldn't come up with the cash.I was not aware of anyone that understands that kind of deal.  

I know this is a differing topic on the forums, and online in general, but having the legal background/education and knowing estate planning concepts you'll realize it shouldn't be.  

I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

Do you have a loan lined up? 

Depends on strategy and long term goals with REI.

Here is a link that provides fantastic information on the turnkey investing option from BP. 

It can easily take 6+ months to find a motivated seller. - Just be prepared, because a motivated seller typically has a property with issues you need to be sure you can solve.