I assume the sellers are offering seller financing since obtaining a traditional mortgage or refinancing to one after 7 years for this property is highly unlikely.

I waive escrow on all my mortgages and pay taxes/insurance with cc, put repairs on cc, etc.

Regarding calculating ARV, we also own a mortgage company and a real estate company, we we do a CMA using the MLS.

With the high housing market in the past few years, house-hacking and living "rent free" is very tough almost everywhere in the country, especially if you are planning on putting <20% down (higher mortgage payments + PMI).

But then i ran numbers and realized that at current rates i have to pay 4300 (3300 Mortgage, 1000 Prop taxes ,900 HOA) . 

I had another local realtor tell me it might be worth a shot at least trying to fill it as an MTR for the first 3 months of 2025 as I don't owe my first mortgage payment on my new home purchase until March 1st of 2025.

If you're worried about cash flow, put enough money down so that a current estimated rental price after the home is renovated will cover the mortgage and property manager costs.

Patience can be your best friend and if you attempt to over leverage a property it can come back to hurt you.Some will recommend buying subject 2 where you could take over an existing mortgage that could be at a substantially lower rate - but if the lender finds out and calls the loan that could also be very bad.

He still put down 15% on top of the 1st and 2nd position mortgages. 

Given the general importance placed on cash flow, is my line of thinking incorrect and therefore should buy something cheaper or look more into duplex etc?