But even then, seller financing is rarely substantially better than another investment they could make (including trust deed lending, which will often be at a higher rate than seller financing)In my experience, the owners who find owner financing advantageous are at the ends of their careers and are not interested in looking for another investment (other than the usual retirement funding sorts.)

What are your experiences with "boring" real estate?

Additionally, I would suggest you run some financial calculations such as cash on cash return as well as any appreciation from the asset if/when you sell.

Now you are saying you have no experience owning/operating an STR, that's another hit.  

If I were to do a traditional VA loan, the loan would be close to 7%.Below are what I understand to be the numbers so far:Seller purchased the property in DEC 2022 for $1.13M (owned for 2yrs)Current estimates are Zillow= $1.26M/  Redfin=$1.323MOur agreed purchase price is $1.25MSeller financing would be $120k @ 8% for 3yrs.No commission cost.Small percentage of fees/ costs in the tune of 1.5% of loan amount.Let me know what you think and if you need any additional info.

So not much advice, but feel free to experiment and ask your guests to give you feedback. 

@Matt PowersFrom my experience, deciding between short-term rentals (STRs) and long-term rentals (LTRs) depends on the market.

I want to learn and get as much experience as I can.

For the layout and having 1 bath 1 kitchen each, I am guestimating the repairs maybe 6k each unit if I did not do it myself/with friends since I have plumbing experience.

My last note would be to try to buy 3 or less replacement properties, it makes the exchange much easier and you avoid some additional rules.