Most professionals will recommend a separate LLC for every $1 million in assets, but I don't think that's necessary.

If that covers the $400 I think you’r ahead.

I do think that an investor should acquire a long-term buy and hold property if they can find them right now because Huntsville is taking all of the right steps to continue to grow. 

I think a lot of these folks are selling the illusion of secret techniques to get new investors to write a check.

Seller should record their lien against the property, you both should have an attorney review to make sure all interests are property documented and protected, and i think everyone is in a good place. as far as evicting tenants... this is up to what you and the seller can negotiate. i would still be putting on the same contingencies - appraisal, inspection... know what you're buying. don't get blinded by the seller-finance piece. 

This is extremely unfortunate and I think the name does not match their product, but there will be many others out there that do the same - so what can we take and learn from this as well?

I’ve been doing Subject to and Creative Finance for a very long time, and I know you have to think ahead.

Overall we both would win it seems quite big, esp w interest only the cashflow would be positive. he didnt really like we are doing an appraisal as he might be thinking he can pull a fast one on us w his price tag.. again happy to overpay as i see the potential but obv not outrageously. 2) Can principal be payed down in interest only seller financing? 

I personally think it's good to diversify your investments and not be too heavy in just one.

But do you think that 4-5 years is not a window enough of time for them to recover?