One specific question I have with this group and others is what prevents a sponsor from refinancing in the latter stage of a deal and simply returning only an investor's original capital contribution and then subsequently selling the property and keeping all of the appreciation for themselves?

This could become a good investment due to the large number of people that simply say they would not consider it.

I have been studying the markets around me for months and have been putting in offers regularly and have yet to get one accepted just simply because of how hot the market is right now and the very low levels of inventory available. 

You should also consider that things can move in the opposite direction and potentially you can lose a that investment just as simply, so it is a riskier investment.  

I suspect the seller does not want to wait 35 days.. so do you then put a very short term Loan on property with the middle man on title.. or do you simply take title?

Value = NOI/Cap RateNo clue on the accuracy of your cap rates, but assuming they are correct:Building 1 = $319KBuilding 2 = $322KBuilding For Sale 1 = $500KBuilding For Sale 2 = $656KSo seems you are pretty close with your values except for Building 1.The 2% Rule is simply GSI/Market Vale (or purchase price, or ARV, or whatever you want to use).

Do they view contractors as simply blue collar folks or businesspersons?  

However in my experience is the attempt to hedge against the risk.

The philosophy is that once someone says they are an investor attempting to acquire something that isn't on the MLS, it's like saying, "Hi I'm a used car salesman".

Then, would any of you suggest simply listing a property for sale on the MLS for a flat fee and save 3% in commissions if the homes have how DOM, the market is hot in the area, and you have it priced right?