I am wondering the best loan process of purchasing off market properties not using a conventional bank.

You presumably wouldn't allow that happen if you still had equity in the deal.But, if you did lose the property to foreclosure, it would be auctioned off.

Off market - seller wanted a cash offer How did you finance this deal?

We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow. 

TLDR: I found a seller who is open to a financing an off-market 5 unit multi family home near a major hospital in Denver.

It's essential to familiarize yourself with the local landlord-tenant laws and work with a reputable property management company to ensure smooth operations.Short-Term Rental Laws: Philadelphia has regulations on short-term rentals, but it is still possible to operate Airbnb and similar platforms within the legal framework.

I'm certainly trying to avoid getting too married to one area off the bat and making a rash decision.

So yes, more expensive homes with lower rates can be different than cheaper homes in higher areas but then actual principal, interest, and insurance will likely do the off-setting. 

Option 1, someone takes the property off your hands and your mortgage goes away.

If you are doing a one-off deal that is very special (ex., rural quadplex STR) and no direct lender can do the deal, then it makes sense to reach out to a broker and cut them their fee, as they can help you navigate the market more easily to find funding for your deal.