The holder of the note makes no real difference; in Jane's case, it might be more advantageous to her to hold the note than sell outright depending on how she can absorb the sale from a tax perspective; in your case you don't have enough income to do a conventional loan so getting a seller carry can give you more properties.

Thinking about making the first purchase:roughly $90K sale pricePlan to purchases with 100% Home Equity Loan 7% interest only for 12 monthsInvest $20-30K in renovations (using 7% interest loan)Anticipated value $150KThen Refinance $90K with conventional mortgage before the 12 months are up.It will cash flow $300 /month based upon current market rentals.Question: Could I also consider selling property where I finance?  

If you have lived in a home as your primary residence for two out of the five years preceding the home's sale, the IRS lets you exempt $250,000 in profit, or $500,000 if married and filing jointly, from capital gains taxes.

The property is scheduled for a foreclosure sale prior to your close date, is that correct?

There's a couple things - you can get bridge funding now or some type of private money bridge/construction loan that will give you acquisition funds, so that you can acquire said building and then take the time to get your permitting squared, and then roll into construction portion once ready. 

Make certain the sale looks "clean" and "makes sense".

The original plan was to split the home and do a dual rental where one portion would be an Airbnb and the other a regular LTR, but after completing the rehab we decided to have it fully as an LTR.

I think this is where things got a bit messy, the lein likely isn't from the arrears, it's most likely from the origination agreement for the installation of the solar panels and probably has a "due on sale/transfer/whatever" clause.Now you would like to purchase the house, but without paying off the solar company's lein.

On smaller deals like this, the valuation is determined by the market demand as appraisers use the sales comp method. 

The original plan was to split the home and do a dual rental where one portion would be an Airbnb and the other a regular LTR, but after completing the rehab we decided to have it fully as an LTR.