If the plan is to stay with a commercial loan, the construction finance and permanent loan can be one product, with typically a 12 month interest only period during construction, then rolling into a principle and interest payment afterwards. 

Instead I hedge my returns by saying to them, I don't want you to have to worry about more payments right now, but I will need a better sale price in exchange.I like to do these deals in a retirement account that's tax advantaged. 

I just took a quick look at homes for sale and for rent.

At least we’re not talking to a sales person and just exchanging ideas.

My very first real estateinvestment was a note & mortgage creation with a sale of thatnote/mortgage at closing.

Gotta give a 1 up to @Evan Polaski here, the idea that commercial loans and products in general have a ton to do with borrower risk and lender relationships is a big variable. 

One of the 3 bedroom units that was occupied at sale has a chair lift inside to access the upstairs.

To piggyback on what @Carlos Ptriawan mention here, check out these properties' sales history:https://www.redfin.com/CA/Cupertino/22483-McClellan-Rd-95014...https://www.redfin.com/CA/Los-Gatos/16935-Roberts-Rd-95032/h...https://www.redfin.com/CA/Saratoga/19546-Vineyard-Ln-95070/h...In the right market, right location, and right architecture (Some condos are built like townhouses/ SFHs), this is what you get.

Any conventional loan products for property in a flood zone (not sure what flood zone 9 is) requires flood insurance, which can be very expensive, and rates have been rising each year. 

Not only is the new owner taking subject to local law, but taking subject to means current owners cannot conduct sham sales in order to evade tenant protections.