I watched a Tracy Z video where she illustrated the "1/2 the note for 1/2 the payments" thing. 

It would be enough for a down payment on a home but being a 1099 employee it is rather difficult to obtain traditional financing.

I’m thinking of asking  30,000 down payment from buyer for them to takeover catch up back payments & monthly note 

Is this considered acceptable or would most want monthly payments in the interim?

It's time to start once you have saved enough to comfortably put 20% down, have enough reserves that you can handle a major repair + 6 months house payment, have researched local landlord laws and rules, have a good idea about what paperwork you will need and have it ready (lease, move-in checklist, background check, etc...), and you've done your research so you know what a good deal looks like.Then the hardest part!

You will have interest income though with each payment. 

so it does NOT reduce my future down payment. 

We are considering picking up our 3rd STR via a LO as a way to get a property quickly vs. waiting to accumuluate the 20% down payment required to finance.My questions is, since I would not be the owner on the deed, would I have issues with obtaining a business license to operate a STR and pay the hotel/motel and sales taxes or would I need to involve the owner of the property?

You stated that you would like to use a minimum down payment of 20% which would be $10,800.00 on a purchase price of $54,000.00, on a 30 year Conventional fixed rate program with today’s rate of 6.0%.

Imagine going to the celebration and buying a gift card for little fee fee only to see them come on hard times , fall behind In rent and you have to evict them for non payment .