I'm in a cheaper market, but I use the HELOC method. 

Plumbing , mechanical , electrical , and structural  .

Not sure how we would legally structure this and still get that benefit though???

If this terms make the loan not viable, either look to structure the deal differently (creative financing, lower purchase price, etc.) or pass. 

He explained that he prospered through the mundane: understanding and exploiting the financing structure of his purchase.

Tough to make out exactly what he was saying.To see what he’d say, I offered to have my attorney set up an escrow account (at no cost to him) to hold the $5600 for us and to help us complete the transaction, to which he responded that would mean he would not have the funds then available to pay for the due diligence activities, and that would not be fair to him.Suffice to say, when he outright declined to do business using legitimate methods, I knew for sure this guy was a scammer.

How long have the tenants been there and what is the lease structure of the current tenants?

Structuring your offer that way keeps you safe from some potential vultures, the down side is some sellers will reject on principal. 

It is one of the most cost efficient methods as well and low startup cost.  

Every house I go to seems to have major structural issues or they are in terrible locations.