Would this be better to try and go through a local bank or is there good options for private money or other banks that specialize in this?

The seller is open to seller financing, which presents an incredible opportunity to grow without traditional bank financing.

That's a technical banking and legal term.

You technically CAN break it up on Schedule E; however, it is not the best thing to do for audit purposes or an actual breakdown.You should have an operating/partnership agreement together and you should have a dedicated bank account for the property.  

I think the borrower is better off trying a local bank or broker in that area.

Banks buy and sell those all the time.I think you're saying you have a borrower who has negotiated with the bank to purchase their note from the bank.

But I guess if you want to give a bank $375,000 upfront and $10,871 a month for 30 years you are welcome to.

.- Depends on what you're doing specifically, but usually I'd recommend getting an EIN at least to give access to business bank accounts- Repeating #1, if you're going to a property and 100% of your time is spent doing renovations and the like, sure, but if any of it is for personal benefit, that'd be disallowed.

When there is a sum of money in the bank, I’d rather buy another property than pay for fire damage, and I’m happier with the insurance coverage.  

When I read the bank would accept 91k I understood that to mean that was the 30 day payoff amount on the mortgage.