Does anyone have experience doing private deals with elderly folks wherein they remain in the home? 

I finally looked up the tax records and found out the owner is a private real estate investor who lives out of state now.

@Marie Rufty, a private lender may be the way to go.

Purchase price: $315,000 Cash invested: $180,000 Sale price: $519,000 Purchased a SFH off an auction website and funded the rehab through an investment brokerage and private money and ultimately cashed out my 401K to finish the project. :( What made you interested in investing in this type of deal?

you simply wrap the note.. you stay on the hook though for the first and you collect the payment from your buyer and you make the payment on the first until its paid for.Example.your note to your private lender is  100k  you sold for 150k and got 25k down.. you do a wrap mortgage for 125k.. the payments coming in on the 125k lets say are 1000.00 a month  the payments to the person you bought it from are 750.00 you make the delta. 

Are private lenders for real estate able to charge private mortgage insurance the way that banks do as an added security?

In today's market, private mortgages can go down to the mid 3's and have numerous benefits, including not on credit, lend to llcs, and no income docs.

.- First/last/security - signed lease- Copy of renter insurance- Copy of drivers license- Copy of car registration - Statement of condition for the apartment.

One very safe way to do this is with a private mortgage note. 

Looking for an example mortgage/ promissory note (Contract for private lenders) for private "family" lender.