Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

If he has a $5MM loan in place, what was that used for / is it coming due/ was it short term/ etc.?

Personal loan for renovations How did you add value to the deal?

This is a large community and someone might give you some insights on the lender or the loan officer.  

@Chungying ChuIf you want more liability coverage, ask your insurance company if you can increase it.

Instead of a traditional down payment, I would give them some money (maybe just to bring the loan back to even).The upside if taken over the loan at the current balance, with some rehab and hopefully getting the front lot back would be a nice ROI. 

It can rent for $3600/m Using 615k ARV and 75% LTV with taxes and insurance my payment is: $4267. 

The seller was willing to take a secondary position on other property assets and provide a 3yr 4% interest on his loan.

@Eric Robertson I'm the founder at Obie Insurance.