House also doesn't have operable A/C...so I don't see any extra motivation to get this done "in the near future" with sweltering AZ heat. 

This group seems to have very little motivation to sell at a discount because they bought super low, put in work recently, are cash flowing very nicely and want a higher pay off on their time/money invested.I think anyone who bought before the crash, had to sit and watch their equity drop and is now watching it rebound will be much more motivated to sell at a discount to get out while they're even or ahead.

Locate a Motivated Seller that will consider Seller Financing.

How does his motivation and my tactics vary depending on if he wants to put money in bank,re-invest, or what-not?

I am also trying to figure out acquisition from overseas, which is a bit more challenging than buying from inside the US.So it is definitely achievable.

If that doesn't work, I would consider talking to any other motivated mortgage broker to see if they thought you could get the PMI removed.

I've done 100% seller financed deals, just depends on the sellers motivation.  

I want to acquire mainly single family homes (at least for the first few years) but financing with a standard mortgage will be difficult to achieve in a year.

I'm like 90% purchase business and generally prefer it that way (buyers are more motivated borrowers than refinancers, so I don't have to chase them around for paperwork), but when one like this that sells itself no matter how you cut it (did you notice I bumped your rate like half a percentage point and could still sell it to you?

It does not matter whether you choose SFH, MFH, mobile homes, strip malls, or hotels...the true determination of your success is how well you know your strategy and your area.Having said that, I would recommend examining your motivations for SFH.