I just got off the phone with a seller who states that in a land contract, he would have to pay back up to 80% of payments to the buyer if the buyer defaults.

You simply need to claim that you didn't get or weren't satisfied with your purchase. 

@Mark ShubinHouse hacking means buying a place and living in one part while renting out the rest to pay for the loan.

Or you can pay the taxes now and invest the remaining proceeds into syndications that potentially offer higher returns than DSTs. 

@Bethany Travis, the short and straightforward answer is to pay a real estate attorney to draft a purchase and sale agreement with an exhibit to assign the contract.

I have no credit debt and $12,000 of student loan debt I'm looking to pay off within the year.

I know you've already solved the issue but going forward you simply list the other adult as an "authorized guest" of one of the individuals financially responsible for the lease.

Many of the properties in more desirable areas (and higher potential for appreciation) would allow me to pay just about the same that I am renting right now after considering every expense under the sun (PITI, vacancy, PM, capex, maintenance, etc etc).

So I need to pay them off or keep them on the books and continue buying property with DSCR loans from now.  

In my own personal finances, I do work with a fee only advisor - I pay him a fixed fee out of my pocket based on net worth, and he doesn't collect anything for investment in particular funds, particular brokerages, financial products, etc.