To me sounds like something an amateur would do who is trying to save a few dollars hiring the cheapest vendor option out there.

.- HELOAN option - There is a small chance that you can pull out the equity using a DSCR HELOAN but make sure to calculate the blended rate and total payment before moving forward and comparing that to a full new 30-year fixed loan.

When offering a seller options you are selling speed vs convenience, do they want to move on fast?

Find your syndication partners and discuss these options with them. 

At least explain the situation and they'll give you an unbiased, informed answer to let you know what your options are.

Turnkey rentals would be your best option, somewhere with immediate cash flow and some appreciation upside if you hold it.

I would have the option to buy the home in 5 years for $1.3 million.

Rates are generally higher on interest only options and the difference in payment isn't that huge from a 30 year fixed option

You may be able to find deals in areas that aren’t doing well, but if you can’t dispo them it won’t matterDiverse Pool of BuyersYou’ll mainly be selling to investors, but having a diverse buyer pool gives you more options in terms of exit strategyRegulatory Environment Low regulatory markets can help keep things simpleKeep in mind that regulations change quickly in many areas, so it's important to keep and eye on your markets for changeThings to consider; rules regarding holding a license as a wholesaler, probate laws/processes, STR rules, etcStrong Rental MarketThink from the end buyers POV.

I recommend talking with an insurance broker to work through all your options with coverage.