It occurred to me that I could do a seller finance deal and perhaps get a better return. 

You have to ask the question, if an accident happens, personal injury or property damage, are you prepared to take that on yourself.  

The advantage to the buyer would occur at the end of the mortgage, not the beginning. 

The point here is simple- a mentoring program can provide some discipline in the earliest levels of the business, and as progression occurs, their resources can provide that little consistency.

So after close if the unit is trashed and damages and lost rent are occurred within a specified time frame then that money is released to the buyers post-closing ( you estimate maximum rent lost, eviction costs, and possible damage to the units as the hold back figure) .

Auctions typically occur on Wednesdays, though Denver county does them on Thursdays.  

I've picked up more deals in cafes my accident, walking and taking with what I did than most everyone on here trying to mail yellow letters or clicking on internet.  

I do not know the status of these last two:Re-sales occurring 90 days or less following acquisition will not be eligible for a mortgage to be insured by FHA.

If loss were to occur on this project, who will bear the loss and how will it be split?

An accident on your job can SINK you if they come after you and they don't have the proper insurance.