Analyze potential rental income versus expenses carefully to ensure the property will generate income from the start.

Be careful of SVDP.

But unless they advertise the seller finance (and be careful as most are really bad deals), then you'll need to talk them into it.

I say, if everyone is talking about it, it's probably too late.Be careful not to reject someone's advice in a city you haven't heard of much.

My gut says I need to cut off of this deal,  but curious to get your perspective.

Many companies will be lazy/cut costs after they have a large enough customer base.Currently Dataskip.io is the best. 

Quote from @Matthew Kwan: For those who are currently shopping or looking for a loan since rate cuts has been a hot topic.

I wouldn’t go as far to say it’s a scam, but the amount they’re taking as a cut is unheard of in the industry. 

If the covenant specifically prohibits renting out rooms or STRs, you may be restricted from doing so.You should carefully review the covenants tied to your property to understand the specific restrictions.

Be careful about using your current home equity as a down payment on another property.