It depends on what the terms of your mortgage are.Pros-with no mortgage, you have higher cash flow.Cons-if you plan on buying more properties, you are better off saving the money for a down payment for your next place.The big questions are: can you get higher than 7% return if you invest that money elsewhere? 

Even if such a loan existed (which I doubt), once Vincent self funds all improvement costs, finance charges, carrying costs etc., I doubt he's any better off.

Are there other more creative ways to start cash flowing in year one Be careful because federal mortgage fraud and going to jail is a real thing.

Does the operational company already exist and have income history?

The main condition was I had to have the downpayment (20%) first, close the deal, and then execute the owner financed 2nd mortgage. 

It's my understanding it's now similar to if it was a mortgage foreclosure.

Net Income post-mortgage: $75K/year.

My name is still the only name on the mortgage and title.

Having a mortgage and your normal STR insurance is already 2 levels of protection. 

Net post-mortgage: $52,392/year.