No one is developing them it's too niche. it's more of a local developer type product but they are high cash flow and very low cost to operate and setup and you can pull out a lot of cash from refinance or sale. very little development. just focus away from rural markets you don't want to compete with overnight trucking. 

Looking for advice on whether I should take out the equity, or seek another type of loan.

Thanks, Brian You would need to use a commercial DSCR loan, these types of 30Y loans do not need 12 months of seasoning. 

Can you afford that type of payment?

These type of people always have a story about the job they're about to get, tax refund coming soon, inheritance, etc. and when you drill down you find out they lack basic things (ID) that would enable them to follow through on their plans.

Interest 9-12 percentAmounts: 225,000.00 to 400,000.00Term: 36 MonthsSecurity Position: 1st PositionPayment Type: Interest OnlyDo you think note investors will be interested in these notes? 

Since there is not lien/loan, then you can create any type of loan you want if the buyer agrees.It still kinda sounds like the buyer may not be fully aware of the nuances of the deal.

It really depends on the area and type of property, as in many neighborhoods people would prefer a bigger yard over a pool that they have to pay maintenance for. 

It doesn't always come down to "math" on these types of homes.  

What made you interested in investing in this type of deal?