Scenario 2 buy 2 houses for 50k cash each (or one for 100k 4 for 25k etc)  pay out off pocket for my own rehab.... and again as long as my bank is happy with the numbers cash out finance and go do two more? 

He may also feel like if he got cashed out, he wouldn't know what to do with the money (other than put it in a bank at 1%), which you could help him with.

Easiest to talk to that person's local bank who will connect with USA branch lending (for example if you have hsbc premier account, they will arrange a US mortgage). 40% downpayment, and interest rates normally 1% above the current rates for US residents. 

Most clients (more often than not banks) will require the appraiser to do the assignment on the Fannie Mae 1025 form (https://www.fanniemae.com/content/guide_form/1025.pdf).

If you were to purchase a property from someone who wanted to do owner financing it is safe to say that they would like to be the bank on the transaction and bring in a monthly income with a nice yield. 

You should also have been and continually shopping local smaller banks and CU's working with their commercial lender on something that works, if you have some cash saved, a decent job/income, and a good credit score, you should be able to get fix and flip loans fairly easily from a small bank.

I have an applicant that only has social security coming in and said they recently sold their home and have money in the bank.  

The bank was very understanding and VERY confident in the property getting the C of O.

I'm a newbie but I was looking at multi family's around my area and wondering if there's anything special the banks can do if your purchasing a property that is already cash flowing with tenants?

Today everything seems good - sellers agent contacted my bank to ensure profile/pre-approval.