I would suggest speaking with investors in your local real estate investor association group about private lenders.

Anyone out there with experience using foreign private money, for example AUD, and how you handled the risk of currency fluctuation?

Even the best tenants need time to privately discuss the pros and cons of the place, then go home and look up old landlords' phone numbers, etc.

Is there a way to arrange a private deal with the retiree and pay him back directly over time if he agrees?

Repair the house with private money (no serious repairs only updating)3.

At a certain point the cost of private schools and constant rent increases and moving is weighed against the appeal of owning a home in a safe suburb with good public schools.

Many wholesalers, developers and private sellers from around the United States and around the world use me as their international marketing partner.I have sold properties in every continent of the world and have clients in all time zones.I am a member of the National Association of Realtors and I am a Certified International Property Specialist (CIPS).Having clients from all over the world I am well versed at cross border communication and knowledgeable when it comes to cultural differences.Iain Stewart 

I will be getting a private loan. 

Would I have to find another method of financing the second deal like hard money or private funding?

My problem, however, is finding a hard money lender or private money lender that works with you based on the deal, not credit.