Highly recommend chatting with @Ben Trageser about this.

The property currently has a county-assessed value of $849k and may appraise for more.Is there any possibility for me to structure the seller financing + bank loan such that l can end up getting a check at closing?

You will be well served to enter into this strategy with as much knowledge possible on how to maximize rent with section 8, how to vet tenants, especially if you're going to be sharing a building with them, and to do a reality check of whether your strategy will really work.

This is insanely expensive for lenders and, if buybacks get out of control, can literally wipe out the equity capital of a lender, causing insolvency. 

Nice to see so many in this area.

For the seller financing, I had to locate the original notes from over 10 years ago.All that said, the loans that don't report are still nice, but keep that those documentation requirements in mind.

It has to be rented to 1 family and how did you get around this?

I guess since you developed this lot I was expecting to see, Lot CostBuilt CostSale PriceProfit 

What does this mean?

Since the loan is already in your name, I think you are in a good spot but I'm not a lawyer so double check with a lawyer.