If owner will carry the agreement, will the Brrrr method still work?

Properties have all sorts of issues when they're acquired and title issues can be among the most serious as they can prevent you from carrying out your plans. 

I do carry a multi-million dollar umbrella policy plus landlord insurance.

And until the Real Estate Police come kickin' down my door, I'll continue to carry on.

But if the seller will not do that, then plan to spend another 4-6 points on closing costs on top of your down payment.Some hard money will allow the seller to carry back 25% and then they will finance the rest of the purchase and a rehab.

Ive talked to the owner and he doesn't care much for the place and says hes willing to work with me on financing (possibly carrying the note at an accelerated interest rate for around 3-5 years).

You will have to bring in 25% plus whatever rehab money and carrying costs are involved.You are better off finding a partner who has money and splitting the project.

The only thing I can think of is if you want to offer make the buyer a loan for part of the money to buy the house, then you wouldn't have to pay taxes on any money you carried back in the loan.You said you needed some of the money, so if you wanted to spend $30k and the sales price is $700k you would loan them $100k then they would get a bank loan for $570k and you would not have to pay any taxes on the $100k until they paid it to you.

If you plan to carry the paper, there are regulations that govern that as well.  

To what extent will the parties be free to carry on other businesses - while the joint venture subsists- if one party pulls outIs it intended that spouses/partners should also be shareholders, to allow for tax advantages from a broader split of dividends?