I would definitely pursue the insurance.

That due diligence plus other investor feedback should give you an idea if this opportunity is worth pursuing.

Is this worth pursuing?  

If both parts do not come together where both are mutually getting out of the relationship what they feel they should then it might not be a relationship to pursue.    

We are looking for value add properties of this size, and will continue to pursue them.

I have recently decided to pursue my interest in real estate in the hopes of generating enough passive income to support myself and future family (soon-to-be DW) without feeling the need for a 9-5.

How do things work in this scenario and should I form an LLC before pursuing? 

The property fell in my lap at a really attractive price and I thought I would be fool not to try and pursue it further by utilizing my network. 

The seller wants 9.5% for the seller carryback though, which would gouge our cash on cash returns, so we're pursuing other avenues to acquire it with JV Equity or private money.

This info will help me negotiate with the seller and help me decide if this is a project that I want to pursue.