I have heard multiple stories of people who bought performing to get to non-performing and didn't even receive a single payment before they became non-performing notes bought at a premium so keep that in mind as well.

It might sound like a subtle difference, but keep in mind that the property has to appraise for that increased amount that the seller is crediting back to you. 

Keep in mind private lenders are those that know and like you and trust you there are no private lenders on the internet .. 

Finally, all the improvements we did to the house over the years were with "renting it out later" in mind.

Happy to connect and meet as many like-minded people as possible.Best,Dan

Yeah, I'd rather do it monthly, but I don't mind doing it more often.

In addition to the potential increase in cashflow by doing a 1031 Exchange, it would give me peace of mind as this property is the only one in my portfolio that is exposed to a high risk of flooding during a natural disaster as it is located in a very low lying area.I am happy to provide additional numbers/details if there is anything I am leaving out.

Your advice clears out my mind. 

If the borrower pays off early, I would make a nice return, obviously, but I wonder, what motivation is there for the borrower to pay off a sub 2% loan early. 

I will do my best to find this out and speak with a local lender.I really appreciate your advice and will keep this entire page in mind over the next few months as I look to purchase.