We are able to get the bank to finance at 80% of the appraised value so no money down.

I agree to spend $500 isn't breaking the bank..but unfortunately, his price has gone way up after he realized I wasn't going to use him for the whole project and was going to do some work myself.

Any recommendations on banks in South Florida who like doing multi-family real estate loans? 

My concern is over-leveraging... can banks call a HELCO if another 2008 happens and the price of our home decreases... like they can with capital calls on commercial real estate?

Most banks will limit the income credit from the rental given your limited ownership (less than 2 years).  

My lender (bank) transferred one of my mortgages to another bank with instructions regarding where to send future payments.

Which banks in Ohio, or nationwide allows for seller financing of the downpayment?

They want a cash offer of $128,000 for both properties.My question to you guys is would I be able to use a hard money lender to obtain the property with cash and then refinance the property through a bank to obtain my mortgage?

I've gotten a few weird looks when I've asked at a few banks in my area.

Closing was four months, but that is because it was a foreclosure and things tend to move more slowly (depending on what bank owns it and how much they care about liquidating that asset).