He would contact home-owners that had loans originally with these banks, and work with the home owner to contact the mortgage-servicer to negotiate a much lower balance because they did not have the original note.

The smaller distribution amount will result in a lower tax rate, and if the home interest deduction is still around, you'll benefit from that as you pay down the mortgage - possibly from smaller annual distributions from your plan.

If you put that equity into your new house you could pay off the loan faster or have a much lower monthly housing expense, and you can take out a Heloc to invest with.

Since you need to minimize risk, your profits will be lower, but so is your risk!   

That's lower end entry...there is a wide range in Denton and there are opportunities, depending on your risk tolerance to look at higher end...in Denton County we are still undergoing strong expansion and are seeing spill over of development around the top of the lake. 

Was thinking, should I submit two offers; higher asking price with lower interest vs lower asking price with higher interest?

- How do I go about offering a lower price to the seller than what is being asked? 

Being a large corporation, they can afford to wait on the draws or to finance the rehab portion to me directly at a lower interest rate than the HML.

Commercial industrial spaces in my city go for about 600k (3000sqft bad/non-central neighborhood with lower ceilings) to 1.6million (5000sqft decent central location, high ceilings). 

I want to actively work towards my deal as fast as possible but i'm unsure if I'll exactly be able to qualify for a conventional loan with my lower score and lack of a full time job.