However, I'm looking into other opportunities to increase cash flow.As a 26-year-old investor, I am exploring options to maximize my returns while minimizing capital gains taxes on my $125K.

Hi Sean, Bigger Pockets is a great place to learn more about real estate investing. 

Would we be able to pocket the buyer commission to remedy the final sales price or closing costs?

2) the financial upside of a non-performing note going to performing (funds will tend to take this for themselves)3) to not have all my risk concentrated into a few investments Partials seemed like a good option with those three requirements but maybe I'm looking for too much.

My goal is to be resourceful and start with a cost-effective option, scaling up as needed.

Your closing attorney should be able to explain your options if your real estate agent can’t offer alternatives.

While 8% is pretty hard to come by for the average person, there are plenty of other options in the 2-3% cashback range for all purchases.

yes, @Erwin Groenendijk:, I think banks are not as easy to convince for these sort of operations for individuals, but I want to explore all options like using partners (individuals that could and are willing to apply for mortgages) and other posibilities but using my company or creating one is not out of my options.I am not sure there is any current meet ups in Madrid, I have searched and not found much, I will keep searching... good to hear in Barcelona you have monthly meet ups.

There are minimal down payment options available to first time home buyers with grants and down payment assistance on primary residence transaction. 

Do you have downpayment money ready to invest when you find the right option?