Thanks in advance. 

Technically, the loan is in the seller's name and us as buyer are simply making payments with no personal guarantee?

The terms for a 2nd position loan on a rental is 6%, 25 year term,  and 2 points origination fee.  

for a DSCR loan, you'll need to wait 3-6 months and conventional, 12 months.so should you pay all cash just to beat everyone else out, and then hope that the appraisal gets you some of your investment back? 

I can only think of reasons not to: capital gains tax, loan interest rate less than the property’s cash flow, risk… The only way I could make it work would be to identify a buyer I know will default.

Do you or someone you know do these loans ? 

I'd purchase a second home and fulfill the loan requirement for stays etc.

I also say that because as the property appreciates you can always refinance the loan to gain more cash flow or cash out etc..Rarely have I seen investors hold their loan for the full term.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

Also factor in if you will be refinancing and rolling any costs back into the loan if you're looking at ROI.