Because of too big to fail bailout program it just extended the problem out for a longer period of time.

Changing from cash to conventional or private money could create issues with the contract.Many times, private money simply does not close as fast as cash and could end up extending the contract beyond the specified closing date.When I put on my realtor hat and have an REO under contract with a cash buyer and then they try changing the terms of financing, I almost want to find them and break their legs.

I told him I could balloon after 3 years and get the loan from a local bank, but after doing some amortization tables, I am hoping to extend it to 5 years to make sure there is enough equity to be able to refinance and still make the 80% loan-to-value.  

If I were doing this, for me, I'd do light countertops like you have, a darker stained cabinet, extended over a bit towards the stove, and a pergo/quality fake hardwood floor (darker, but not dark, to go with the cabinets) in the kitchen and hallway, tile in the bathroom.

Even banks and credit unions are getting more reluctant to extend lines of credit for this purpose as they begin to understand they can be hurt by regulators for what their borrowers do with the money - especially if the purpose is to seller finance without a properly licensed and properly run lending operation.

You may have to extend geological boundaries, or accept a bit less commission, or partner up with people to get it done.

I had been working for extended periods of time in Alaska's oil industry and had been traveling back and forth from home to the Arctic.

It has been  extended once, already, and perhaps could be extended again.

2) I've seen properties outside of my desired area that based on the listing (I know this needs to be verified) would cash flow but yet they sit on the market for extended periods of time.

Growing fast is nice but it easy to over extend.