Do we first get proof that they will in fact get the construction loan?  

Many lenders won't make a loan that small!

For example, even 50% down payment, the loan repayment is still more than the rental income. 

Utilizing their favorable financing relationships to then secure a ~$1M loan from a local credit union.

All of the online home sites aggregate the data from MLS so it will be interesting to see if seller's agents actually stop listing on MLS as the NY Times predicts.

Online Rent Payment (please tell me you still don't collect rent in person).

If the seller is willing to do seller financing, that seems like a much better solution than doing a USDA loan, but is it really?

We've thought about subbing out to a proper "property management" company but we really don't need help collecting rent or expenses (this is all done electronically online) or even finding new Tenants on the odd occasion when we have an Apt turnover (we use Brokers for that) ...

For those new to the idea of cost segregation, it is like getting a free loan from the IRS.

The only chance you have is to qualify for a “first time farmer” loan at 1.5%.