It requires less cash to get into the property, you have fewer holding costs because you've combined that with your own monthly housing costs, and if things go much slower than expected, as they always do, you aren't going to lose the property – unless you bought something you cannot afford.

While these types of funds may carry high interest rates, it's often not a bad solution if its for short term and you can afford the carrying costs. 

If it's vacant.. the motivation is likely higher)Inherited Properties (These can be pulled manually) If it's not F&C they inherit the mortgage too, often they can not afford two payments and need to sell quickly.Evictions (These can be pulled manually) Frustrated landlord that doesn't want to go through the tenant process again.Delinquent Taxes (Some states are tax lien - like md, others are tax deed states).

Some of them include affordability ratios which will tell you if families can afford to buy SFR or if they are forced to rent.

But he seemed pretty sharp, and was even considering selling his personal residence up there because of how overheated/low affordability Marin is getting.

get references from the builder, ask for his last five jobs, talk to those people.Builders can be great sometimes, and bad at other times, it is almost what they can get away with.Don't pay until job is completed, do not pay up front, if the builder can't afford to buy material to start the job, you need to find a more secure builder.

The question is, can you afford to lose the condo.

Parks offer a very affordable option at a great value and you can't build new ones.  

I clearly stated in the letter that we(my wife and i) are interested in the property, but would need owner financing for a couple of years before we could afford to refi and pay him off in full.

Keep in mind sometimes people say that to try and drive the price up and get the most for their property but I look at it like this, if she truly had such a high offer why would she still entertain you if you low-balled her?