I saw how that proposal is basically her giving me a 0% loan, but at the same time I believe that structure will avoid her taking a large loss (approximately 30k if she accepts a 300k offer).I do not know why she doesnt get a PM, I only share the facts of when she purchased it, the purchase price, and the reasoning she shared with my realtor as to why she is selling after such a short time period.

This is advantageous bc later you have a third party loan (not your personal money) so seasoning period is 90 days to DSCR out. 

Maintenance and UpkeepRegular Inspections: Schedule periodic property inspections to address maintenance issues.Emergency Repairs: Have a plan in place for unexpected maintenance needs.Furnishing the Property: Budget for necessary furnishings and appliances.7.

Make it your business practice to post the notice to pay or quit precisely on the day after the grace period ends, every time.

Most of the time but not all of the time, I visit the property during the due diligence period.

New agents may struggle with periods of no income while waiting for deals to close.Solution: Budget wisely, build a financial cushion, and prepare for slow months.

I want to create a fund that will allow me to purchase distressed homes, fix them up, and sell with owner financing (possibly including a 5 year balloon so as to be able to recapitalize periodically and give investors a shorter horizon).

unfortunately, I think you are right - it's a difficult market for investors, period. 

Usually there's a lockup period (often three years) in note funds, so you can't use that cash to do direct note investing.  

Most of our newer investors approach 2-3 lenders to discuss loan options.Some lenders recommend making your financing inquiries within a 45-day time period to avoid larger drops in your credit scores.All the best!