Also, as you pointed out, you can put down as little as 5% down with HomePossible, get a slightly reduced interest rate and Private Mortgage Insurance....as long as the property falls within a certain census tract. 

I found BP about 18 months ago while medically recovering.  

The reduced number of potential income producing properties has also increased the competition.  

I have money set aside and can go at this independent of a partner but I'm choosing this method to reduce up-front self-risk.

If past experience in this deal is any indication, they will tell me to take our current deal or leave it, but that they will neither do any repairs nor reduce the price. 

As for seller financed notes the good news is Dodd Frank is being deregulated and as for institutional notes it's a supply & demand equation with a big factor being jobs & economic growth, but there's always people defaulting due to job loss, divorce and medical.

but the only way to reduce the actual tax on the flip is to hold it for a year and declare it a rental.

We have reduced our water consumption by 15,000 gallons per day, just by finding and fixing leaks.  

I am a licensee so I would receive commission acting as my own agent which would potentially reduce the price 1.5%.

By paying down more principal it reduced the risk that higher interest-rates  presented.