There are definitely major differences - PM's that are absolutely focused on communication, are more hands-on, etc. 

Sounds like you have a Professional Tenant on your hands.

A successful note investor has a focused approach and narrows its market to a handful of states especially when starting in the business.  

Since you have more cash on hand after the deal the next purchase you make will be easier.

The subject at hand is the house that I am currently living in. 

After running numbers i'm looking at around $780/month in positive cash flow .The seller owns these properties free and clear and wants 5% interest and for me to pay any transfer/closing costs, i'm estimating $1,500.My question is, how do you pay down principal on a deal like this?  

I do not, however, like to ask for a helping hand without offering one in return.

Are there only a handful of buyers getting the majority of the deals out there? 

From what I've heard, they don't really care if you transfer it to an LLC after you close the loan, but it might technically trigger the due on sales clause.

---***EDIT:  I don't have the $150k in-hand.