For example, let's say the property "can't" go Fannie because it isn't a complete & functional home, and let's suppose the reason for that is because the kitchen is not complete, and the reason the kitchen isn't complete is because it doesn't have an oven.Standard two choices that people think they have:Hard money, 2 points up front, 70% down, 3 points upfront, horrible rate.All cash.Third choice:With the seller's permission, throw a freaking $75 oven from craigslist in there the day before the appraiser shows up, and buy the SFH using Fannie financing at 85% LTV, no points. 

Both the mechanical and plumbing seem to have less left on the contract than what would be required to finish the work (for instance the HVAC guy has done everything but put in the new package unit outside which is about a 5k job, but only 3.5k is left on the contract) but I, nor the owner who has been very cooperative, have been able to get in touch with the electrician, and there is a good bit of work yet to do.When you say $ held in escrow post closing to cover leins, do you mean $ out of the seller's pocket/sales proceeds, or out of my pocket?

@Mario FurmanczykIf cash flow is your goal and you can handle the extra demands of C neighborhoods then this is a valid strategy.

BP,We are looking at buying a single family home available with seller financing.

The seller wants me to give him 10% down and sign a contract.

The ONLY way your gonna find deals is to have a marketing budget and to actually market to potential sellers.

If they own several they are obviously investors.Once you get a response from the seller of the vacant house, negotiate a deal to buy it for all cash and get it under contract.

The realtor says the seller has "potential" renters who will sign a 1 year lease at a price higher than what I am seeing  with the rent comps. 

In your offer, add the condition, "To be delivered vacant at COE" and it becomes the sellers problem.

Another reason for distressed land is because my local housing market is a heavy sellers' market (based on my limited real estate knowledge and after what I experienced purchasing my primary residence last year) so I'm trying to use the time while the market cools a little to invest in other opportunities.