Of course, anything can happen to anyone at any given time (health, job loss, etc), however, you have the highest chance of success with a Tenant who cares about their credit, and that is usually reflected in their score and report. 

Additional info, I’m 24, I have a 780 credit score and about 10k or so in savings. 

(you might note that I've already got it handled), rather, it was "Anyone have thoughts on where the liability lies, should a more serious and expensive version of this story take place at some point?"

Our markets are much different so take this with a grain of salt but we use the following screening:- 650+ credit score- 3x monthly rent in verifiable income- No evictions- No felonies- Favorable references from previous landlords

This will ding about 5 points on your score.  

Ultimately it depends of the seller deep motivation to sale, if they need the cash to relocate or invest elsewhere the seller financing will not be a good option however for some sellers the benefits can be: Cash flowing without having to deal with tenants, maintenance property tax etc Depending on the terms you agreed on they can get a good interest rate on their capital Tax benefits Usually with a seller finance they will get a higher price for their property than with a cash offerIf you do a wrap and they have no equity it’s a good way to walk away from the liability and have someone else making payment under your name, in some scenarios it might even help fixing the seller credit score, however the mortgage will still be under their name and ultimately they’ll be hold responsible if you (the buyer) stop making payments.

I have:- a good amount for a down payment (around $40K+)- an excellent credit score over 800BUT:My current and past few year salary is very low (under $20k/year) which is high in China because cost of living is much cheaper.

If you open a HELOC and use those funds for home improvement, then when you sell you'll have to repay the loan in full, which works to your advantage.Keep in mind that HELOCs affect your credit score.

I've got a great income, great credit score, but no home ownership experience and no knowledge regarding financing options for buying apartment complexes. 

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