Mailbox money so to speak.There are some restrictions, such as being an accredited investor, minimum purchase amounts ($100k for 1031), and illiquidity, but they do purchase higher class assets.

Refinance out $60k and just keep them in as renters telling them they are free to purchase anytime for $60k or until I figure out something else. not a bad option.Are there any no doc, asset only 50% ltvs for investor owned properties?

Wait until you can buy a better asset class.

They also don't let their lack of personal capital stop them from buying assets. 

Unfortunately, in many cases, smoking will destroy the quality of your assets.

For me, investor profil has to fit the risk/reward ratios of the deal (Be clear with him, if this is a value add deal, stabilized asset etc...

Rather you just pay the taxes and insurance as those bills come in.The loan from the seller to you is an asset in the seller-now-lender's investment portfolio. 

5) How can a blue collar worker with low to no personal assets/income work around this dilemma to obtain Downpayment for Hard money?

Most solar engineering software accounts for average weather conditions for your zip when sizing the required system to offset your electric consumption.

When I say "capitalize", think of it as just increasing the book value of the inventory... it doesn't have anything to do with an investment asset as the word may make you think.You will record "cost of goods sold" when you actually sell the property.