@Melissa Lee are you still cash flow positive by adding in the $200?

Hope some of this helps, it is what I would do in your position!

I would say, from my experience, there are more good SFR rental deals than there are duplex rental deals.Frenship and Cooper are both desirable, but I do believe Cooper has taken the front position.

We will be raising capital, offering 8-12% returns to investors, but we first need a track record, so we chose to find deals and finance them via Seller Financing, combined with Hard MoneyProblem is, no one wants to be in 2nd position for a mortgage, and all lenders ask for cash of our own up front (several hundred thousands, which we of course, do not have)Any suggestions?

I know putting them in second position is pretty much worthless if we default (not that we would of course).

There is less competition there and you have the rewards that can come from the cap rate when adding positive improvements. 

Because you will be in a position to help because of your long term financial planning. 

We obviously would like to sell and get it off the books, but a lease option could be attractive if we could refi, get more desirable payments and have positive cash-flow.

If I buy a home for $65,000 and have a mortgage of $350/month plus expenses that add up to $1,000/month; then rent it for $1500 I now would have a positive cash-flow of $500.

On two of my houses I cash out refinanced them and they still flow positive albeit only a few hundred a month, but I got out all my money invested in those houses and a few thousand extra on top.