This is the first time I’m seeing someone mention a 2nd position loan, I’ll have to do some more research on that topic.

I’m trying to buy a house in Phoenix using a second home loan, putting 10% down.I'm trying to understand why anyone would choose the 2/1 buydown if you end up paying the same amount of money, whether you select the 2/1 buydown option or not.

The loan currently has a modification, and at this point they’re interested in simply returning the home to the lender.

Without more context, it's impossible to know whether the owner financing terms are reasonable or "ridiculous." 

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

Private money loan?

Here is a great example why.I recently saw this asset come across my desk which was a non performing loan where the seller was a year behind (they made one payment I believe - even though they were allegedly properly underwritten).

House hacking is one of the most popular strategies you can take and it can be a great way to build wealth and generate passive income, but it's important to have a long-term plan in place.

Curious about their fees too (they actually loan through coastal community bank). 

He knew little of loans.