Make an offer to the lender, let them know the guy is behind bars for awhile, talk about judgment proof and impossible collections, LOL (unless his estate has money). 

What I decided to do was ask for a reconsideration based on the fact that my current house has stairs that are difficult for me to climb and impossible for my mother.

Because of the way our office room is situated it is impossible for my wife to even look at my monitor while I am online.

Helps to give me a jumping off point and @Steve Wilcox that ties into your questions because I am asking in general for the purpose of just knowing if that type of deal even exists before I spend a ton of time working on something that is impossible.

I was looking to put as little down as I possibly could, which I now realize is becoming impossible because it seem the lowest down is 20% for investment properties.My first question is how do people obtain private loans, and would I be eligible for one?

There is nothing wrong with doing a lease and giving an option, so long as you are not financing it.There is another predatory aspect you mentioned. charging more for a property since you're "financing" it, financing does not add value to the RE, charging a premium will  reduce the equity required to finance in most cases, making some deals impossible to close, it's an intentional tactic to get the property back and is predatory.

As a buy and hold that's impossible to say without knowing the rent. 

Finding a beach property that will cash flow is near impossible where I am looking.My plan is to continue to save aggressively while continuing to educate myself. 

I know that CAP rates are almost impossible to come by.  

Everything I had seen about the 2% rule made any deal seem impossible (this is in the New Orleans area).