I have shared the obvious answer that he would take the the house back, but I can tell he is still worried about having to foreclose.What techniques or messaging do you find effective to address these type concerns and put the seller at ease when trying to close a seller financed deal?

Hopefully the law suit has some effect. 

I'd be holding it in cash right now, waiting for the effects of COVID to emerge more clearly economically.  

So at least they know the structure exist but do not count as bedrooms.My idea is to buy the property cash and renovate to then cash out but I would need the expertise of appraisers and lenders to make sure I don't get stuck and can effectively cash out.Question for Appraisers: How do you appraise these features?

The effect this could have is a lack of experts involved in your first transaction.

How does it effect taxes?

IMHO, this is going to cause a large reduction in the number of visitors, with negative effects on the city's economy. 

Hard money is simply a professional licensed lender who offers X Loan to value loans secured by real estate and the buyer/borrower can effectively offer quick approved financing to a seller.Creating a means to wholesale such a deal to your buyer may or may not be possible depending on a number of factors and without some specifics, this answer would be a mile long to go over almost all potentials.I will say this, in a wholesale transaction, and depending on how it is specifically structured, having a buyer who is NOT all cash and has to get a loan with approval creates a potential problem where the transaction could fail.

You have made incredible progress(way more than me, which if why I'd like to learn from you), but do you worry that something going wrong could start a domino effect that would end in bankruptcy?

Can you recommend your top 5 ways to find “off the market” properties that are effective?